[SEP47] [OBRA]: Lagoon built by HopperLabs: DeFi-Kit Enhancement

Please refer to the full proposal text on the SafeDAO forum. Some parts may have been removed to fit within the character limit on Snapshot.

Title:

[Draft] Lagoon built by HopperLabs: DeFi-Kit Enhancement

Authors:

@Hopper

Abstract

This proposal is a continuation of a previous one: [Draft] [OBRA]: Hopper Protocol: DeFi Reimagined for Asset Managers.

We have made modifications following your comments. We have revised our objectives, taking into account Ethereum’s Pectra update and our current development.

At the same time, we are excited to reveal our new product identity: Lagoon

Lagoon is a decentralized infrastructure for on-chain asset management. Built on top of Safe using Zodiac modules, Lagoon enables rapid protocol whitelisting and multichain vault creation, enhancing the Safe ecosystem.

We are committed users of Gnosis products like Safe, CowSwap, Zodiac, and Gnosis Pay, and we see untapped potential in them.

This proposal is about supporting us in creating a platform that will democratize the use of Karpatkey’s DeFi Kit.

Aligned Strategy:

[Strategy 3] Increase awareness of Safe Ecosystem

Funding Request:

$20,000 USDC

Relation to Budget:

8% of the total initiative budget (29% of the remaining budget)

Upfront Funding:

Not applicable

Metrics & KPIs

Our main metrics and KPIs:

• Total value locked (TVL) in vaults built on Safe
• Transaction volume
• UX: Integration and vault management using DeFi-kit
• Detailed feedback from protocol users
• Specific PRs, issues, and commits related to protocol integration in the DeFi kit

Initiative Description

Lagoon aims to democratize fund management by leveraging the security provided by Safe. We believe that Safe combined with Zodiac role modifier offers the most secure and scalable way to manage funds.

Gnosis Guild has done a fantastic job with these initial modules. However, much work remains to increase the number of available protocols, enabling anyone to create a vault and easily manage their funds within a large DeFi ecosystem.

Lagoon Value Proposition:

• Lagoon brings together the following three standards:

  • Gnosis Safe: A multi-signature wallet designed for managing digital assets by asset managers on EVM-compatible blockchains.
  • ERC-7540: The asynchronous vault standard that tokenizes user shares, allowing users to deposit assets like USDC into the vault and receive shares in return.
  • Zodiac modules: Extend Gnosis Safe’s functionality by adding customizable governance and asset management tools, enabling more complex and flexible operations for DAOs and DeFi projects.

• Creating Vault Management: The vault is managed by an “asset manager” who has permissions defined by the “Zodiac Roles Modifier” module to interact with the vault and underlying DeFi protocols like Curve, Aave, CoW Swap, etc.

• Adding Cross-Chain Flexibility: Provides cross-chain flexibility by enabling vault deployment on all EVM-compatible blockchains with a single address. This feature facilitates the execution of cross-chain strategies and allows for cross-chain deposits and withdrawals.

Current Status

Four months ago, Lagoon completed its initial proof of concept using Safe and Zodiac modules. The first release has now been audited, and we are scheduled to launch the Beta vault within November.

This marks the beginning of Lagoon’s three-phase rollout plan to establish a robust and accessible vault infrastructure.

Phase 1: Includes the initial release

• Asynchronous Vault compliant to ERC7540 standard and integration with Gnosis Safe
• Setup and upgrade Zodiac Role Modifiers for Gnosis Safe and Asynchronous Vault
• Fee system: Performance fees and management fees
• NAV settled in two timeframes; the NAV is proposed by a NAV committee and later settled by an asset manager
• A Command Line (CLI) to configure Role Modifiers for specific protocols

Phase 2: By March / April 2025, we will onboard 5 to 10 asset managers for the V2.

Phase 3: By September 2025, Lagoon’s infrastructure will become fully permissionless, enabling anyone to create and manage a vault on top of Safe.

On the business and development side, Lagoon is in contact with major players who have shown significant interest in our infrastructure. Among them are Kelp DAO, Pendle, Eigen Layer, F(x) Protocol, GMX, Equilibria, Stake DAO, Re7, Flowdesk, Kiln, Linea, Aave-Chan Initiative, and 3 Comma Capital. You can find the full list in our Pitch Deck.

Risks

The risks of the initiative can broadly be categorized into technical and security risks.

Technical Risk - Risks of Altering the Codebase

• Risks: Introducing new code and smart contracts, even if audited, can inadvertently introduce bugs or vulnerabilities that malicious actors might exploit.

• Mitigation: To mitigate this risk, we conduct multiple rounds of peer reviews and implement a robust continuous integration process with automated testing, static analysis, and code auditing.

Security - Attack Surface

• Risks: Expanding the attack surface by adding new features and smart contracts can give hackers more opportunities to find and exploit vulnerabilities.

• Mitigation: We use third-party security auditors to audit new features and smart contracts combined with bounty programs.

##Timeline & Milestones Karpatkey DeFi-Kit Improvements: Multi-Chain Protocol Integration

• Duration: 5 months
• Deliverable: Integration of at least 6 protocols (minimum of 1 per month).
• Due Date: 01/04/2025
• Budget: $20k

Our goal is to integrate at least 6 protocols by March 2025 with our current team. The Ethereum upgrade scheduled for March may require us to adjust our approach afterward, as it will likely impact the role modifier.

List of protocols we want to integrate on Ethereum Mainnet: Morpho, Symbiotic, Kelp, Curve, Pendle, Mellow. This list is subject to change, as market conditions and the asset manager’s needs.

Each protocol integration will be easily measurable, as Karpatkey’s DeFi Kit is hosted in public repositories. We will also provide a detailed report by the end of the period, including relevant pull requests and completed work.

Initiative Lead:

Lagoon

Team:

Arnaud Gouriou
Role: CTO, he will lead the technical implementation.
Background: Arnaud has 12 years of experience in development, DevOps infrastructure, and software architecture for SaaS, previously working with ConsenSys.
GitHub

Guillaume Dupont
Role: Lead Developer
Background: Guillaume has served as a lead developer at Amphor with smart contracts securing more than $230M de TVL.
GitHub

Julien Francais
Role: Developer
Background: Julien is a highly skilled smart contracts developer who frequently ranks in the top 10 of Node Guardians’ gas optimization competitions.
GitHub

Thao Nguyen
Role: Developer
Background: After graduating from School 42, Thao started her career as a full-stack developer in the French start-up ecosystem.

Additional Support / Resources:

We will need to engage with all relevant stakeholders of the Safe ecosystem to gather their needs. We would be pleased to see our initiative and platform publicly supported by the Safe ecosystem.

Implementation Dependencies:

N/A