PGP-25 l Use Definitive for DAO Treasury Operations

Summary: This proposal aims to use the Definitive Platform for DAO Treasury Operations, including the DAO Treasury and the Insurance Fund.

Rationale: DAO Treasury operations, such as token swaps, are currently performed by DAO Multisig signers. However, performing swaps requires a lot of alignment from DAO signers due to the nature of dex aggregators which are requiring the transaction to be performed under 1-2 minutes. As its almost impossible to get all DAO signers available at the same time (different timezones, etc..) we started using OTC Swaps via Paraswap (not efficient) and TWAP feature from CowSwap (efficient but only available on Ethereum, Arbitrum, Base and Gnosis). While this partially solves the problem on Ethereum, this solution cannot scale on other chains such as Polygon PoS since CowSwap is not deployed there. To solve this problem we’re proposing to start using Definitive.

Definitive is an execution platform and API for DeFi, offering non-custodial smart contracts and automation services across many DeFi protocols. Every Definitive smart contract is backed by a powerful and proprietary off-chain engine. Definitive allows anyone to trade any asset on any supported chain with the same institutional-grade execution found in CeFi. Some features include:

• Advanced order types (TWAPs, Limits, Stops/Take Profit) you rarely see in DeFi.
• Aggregated liquidity across 100+ DEXs, onchain venues and 15+ offchain PMMs to deliver best-in-class execution prices.
• Sophisticated TWAP algorithm that optimizes for best execution price across liquidity venues, minimal price impact & slippage, MEV protection, gas costs, randomized fill sizes and times and execution via multiple Definitive proxy addresses to avoid being tracked onchain,
• Tailored analytics like PnL and multichain portfolio analysis.
• Institutional features such as automated post-trade reporting, sub-accounts, role-based access control, and order flow masking.
• Gas and chain abstraction so traders never have to constantly sign transactions or worry about funding gas.
• Current chains supported include Solana, Base, Arbitrum, Avalanche, Ethereum, Optimism, Polygon, and Blast; and is looking to add support for Sonic, BNB Chain and HyperliquidEVM over the next several weeks.
• Best-in-class security measures including offchain smart order router to protect trader intents (vs. public orderbooks that can be frontrun), and segregated trading vaults (smart accounts) created for each Definitive user (i.e. no commingling of client assets).
• Fully non-custodial - Definitive trading vaults are owned and controlled by each user’s whitelisted wallet. Assets can always be withdrawn onchain (even outside of Definitive’s trading terminal) via Etherscan or similar using the client’s wallet.
• Audited multiple times by top-tier security firms and all audits are visible here
• Team is experienced, having built and scaled institutional-grade trading platforms at Tagomi and Coinbase Institutional.

Links:

• dApp: https://www.definitive.fi/
• Twitter: https://x.com/definitivefi
• Blog: https://blog.definitive.fi/
• Docs: https://docs.definitive.fi/

Definitive allows the creation of vertically managed crosschain trading vaults with granular role management:

• Viewer: able to observe current and past operations of the trading vault. They are not able to interact with the trading vault.
• User: able to interact with the trading vault, including doing swaps, TWAP, etc. However they are not able to withdraw funds from the vault.
• Admin: able to interact with the vault without any restrictions, including withdrawing funds from the vault.

We propose the creation of 2 trading vaults to handle DAO Treasury Operations.

• DAO Treasury Ops Vault: handle dao swaps operations
  • Viewers: Multisig DAO signers
  • Users: Cooper Labs & Mimo Labs
  • Admin: DAO Multisigs
• DAO Insurance Fund Vault: handle insurance fund swaps operations
  • Viewers: Multisig DAO signers
  • Users: Cooper Labs & Mimo Labs
  • Admin: Insurance Fund Multisigs

DAO multisigs signers would transfer tokens required for operations to trading vaults, then we propose that Cooper Labs & Mimo Labs manage operations inside the vault, related to approved strategies. DAO multisigs signers would then transfer back tokens to DAO multisigs.

We believe that using Definitive for DAO treasury operations would reduce human requirements (DAO multisig signers) and optimize operations.

Means:

• Human Resources: Multisig signers will need to sign transactions to execute the proposal.
• Treasury Resources: There will be no treasury resources needed to execute the proposal.

Technical implementation: On Polygon PoS, Parallel DAO multisig will call following smart contracts:

Voting Options:

• For the use of Definitive for DAO Treasury Operations
• Against/Rework the proposal
• Abstain

Authors: Daphne from Definitive