[SEP 42] [OBRA] Simulations and Report: Safings Accounts and Safe Vaults - Kolektivo Labs & Hopper Protocol

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:

[SEP 42] [OBRA] Simulations and Report: Safings Accounts and Safe Vaults - Kolektivo Labs & Hopper Protocol

Authors:

@LuukDAO , @Hopper

Abstract

This proposal builds on the outcome from the Safe Token Utility Sprint 1, early data from Safe {Pass}, and the native Swap integration combined with market research by our teams to simulate and describe the potential value of Safings Accounts and Safe Vaults (Vault Marketplace) for the SAFE tokeneconomy.

The outcome would be a data-driven and tested scope for Safings Accounts and Safe Vaults.

Aligned Strategy:**

1. Research and implement Safe token utility

Funding Request:

35,000 USDC, split over 12 weeks

Relation to Strategy budget:**

35% of the remaining budget (100,000 USDC) - 17.5% of the initial budget (200,000 USDC) as indicated in the Governance Hub.

Metrics and KPIs

We’ll use the following measurements to track the impact of this initiative on the Strategy:

• Contributions of simulations to progress token utility: A qualitative measure of the relevance of the simulations, judged by Safe delegates' and team members' feedback.
• Ability of the Report to drive meaningful product development: Measured by the number of reads of the Report thread and total budget allocated to related follow-up proposals in the three Sprints following its publication.

Initiative Description

Six high-potential use cases were identified during the Safe Token Utility Sprint 1. The Savings Account, a simple yield strategy designed for “lazy” or “conservative” Safe users, and Safe Vaults (or Vault Marketplace), a module for asset managers to offer yield strategies to Safe users, were identified as two promising and related use cases.

The anticipated next step towards realizing these opportunities was to start small pilots for some of these Token Utility Use cases. However, in practice, coordinating such pilots would require a lot of coordination due to technical and financial constraints.

After Hopper, a team building vault infrastructure on top of Safe, submitted an initial draft proposal to progress token Utility through research and simulations, the Safe Token Utility team decided to collaborate with them to create this proposal and produce relevant simulations that can predict the potential impact of these two use cases.

These simulations would be tested against a benchmark produced by our teams and used as input for a report that will clarify the potential impact of these use cases on the Safe ecosystem and the SAFE token economy. The Report should outline strategic considerations and justify follow-up proposals to build out versions of Savings Accounts and Safe Vaults.

The project should take no more than 3 months to complete, allowing for follow-up proposals to be submitted in Sprint 3 of Season 4.

Outcomes of this initiative

• A series of simulations and tests to determine which type of strategies and YBA are most promising, what potential fees can be incorporated, how Safe {Pass} can help enable, the impact on the SAFE token economy, and what an initial program could look like. The simulations will be benchmarked against our market research conducted in Phase 1.

• A data-driven report of the potential impact of Safings Accounts and Safe Vaults on the SAFE tokeneconomy and a description of the process and estimated investment required to realize the use cases to their full potential.

Current Status

The first Safe Token Utility sprint was completed last month, and the insights gained will be leveraged for this initiative. Hopper has also conducted more than six months of deep market and product research.

Risks of the Initiative

Below are the identified risks and how we mitigate them:

1. Simulation results not being able to predict future interest correctly: It is possible that the simulation outcomes deviate from the actual adoption post-launch of these features. To increase the simulations' ability to estimate the potential adoption and value to SAFE, we start the initiative with a four-week research and design phase to identify all factors at play and create a benchmark based on existing market players.

2. Risk of blockers stopping feature development even when presented with an estimation of their impact: Even after the publication of the final report, technical or financial constraints may limit the successful rollout of these features. Regardless, a detailed report backed by simulations will justify prioritizing SafeDAO resources to solve these blockers.

Milestones and Timeline

|Milestone|Description|Duration| | --- | --- | --- | |1. Research and Design|Complete additional research around Savings Accounts and Vaults to identify the most relevant data points and potential blockers/enablers. We will analyze the most prominent YBA, collateralized fee credits, vault strategies, fee structure, and point systems to create a benchmark against which to compare the tests.|4 Weeks| |2. Simulations|Conduct various simulations and tests to determine which type of strategies and YBA are most promising, what potential fees can be incorporated, how Safe {Pass} can help enable, the impact on the SAFE token economy, and what an initial program could look like.|5 Weeks| |3. Report Publication|Publish a data-driven report of the potential impact of Safings Accounts and Safe Vaults on the SAFE tokeneconomy and a process and estimate investment required to realize the use cases to their full potential.|3 Weeks|

Initiative Lead

LuukDAO, an existing Safe Delegate, experienced product developer, and founder of Kolektivo Labs, will lead the initiative. He will play the role of Product owner and project manager to ensure the timely and successful delivery of the initiative.

Team Lavi (@Lavi): An experienced DeFi analyst/researcher. Lavi previously led projects and teams at Index Coop, Prime Rating, and Llama Risk and was part of the Safe Token Utility Sprint 1 team. He is active in the Digital Asset space in Switzerland and beyond. Lavi brings relevant business and tokenomics experiences and 4+ years of structured DeFi research experience.

Romain Lavernhe (Hopper), a multi-founder in DeFi, has recently launched Amphor.io and Morphous.xyz. Romain will be involved in the research and report-writing phases.

Aymeric Lorenzelli (Hopper), Aymeric is the founder of WAGTI.corp and specializes in project analysis. He has been studying tokenomics and governance models for the past two years. He will lead the simulation design and support the writing of the final report.

Additional Resources

When we run the simulations in October, getting data from the Safe {Pass} and Safe {Wallet} Swap features in October would be helpful.

Implementation Dependencies

No dependencies