Vaults for DAOs & Organisations
DAOs, companies etc
Until recently, Enzyme has primarily catered to single Vault Managers owning an Ethereum wallet. This section explores how to create Enzyme products with organisations using Gnosis Safe.
Gnosis Safe is a multisig wallet which allows organisations to customize how they manage their crypto assets, with the option to require a predefined number of signatures to confirm transactions before they are executed. This helps prevent unauthorized access to organisation-owned crypto.
You might be asking yourself why would anyone want to use a multisig to manage assets with Enzyme? Here are a few reasons:
- Organisations are able to access a quick & easy way to connect to multiple DEX trading venues (eg. DEXs, aggregators, derivatives), DeFi protocols (eg. depositing to AMM pools, lending) and DeFi benefits (eg. farming or airdrops) from one place.
- Enzyme provides users with full, easily readable, auditable and transparent reporting over assets being managed.
- Organisations can delegate trading to 3rd-party for efficiency in a non-custodial way (and revoke it at any time). The 3rd party can also be a trading bot.
- Organisations can pull in outside investors to invest alongside their strategies and charge optional fees (eg management, performance, entrance all calculated and distributed in an automated way).
- Gnosis Safe gives Vault managers a way to layer organisational governance structures on top of their products.
Let’s explore a few concrete use-cases that might be interesting:
DAOs often sit on large treasuries which are not being actively managed. It can be challenging to manage a DAO treasury efficiently and track its performance transparently. This is a perfect use-case for Gnosis Safe + Enzyme. Organisations can simply plug their Gnosis Safe into Enzyme and engage with a purpose-built asset management toolkit.
Investment clubs are groups of individuals who join together to invest together and share resources. In many countries they also benefit from regulatory exemptions. Members of such clubs typically meet on a periodic basis to make investment decisions as a group through a voting process and recording of minutes, or gather information and perform investment transactions. A combination of Gnosis Safe + Enzyme enables you to set one of these up in minutes!
In general, nobody likes operational risk — especially organisations. If a Vault Manager were to compromise his/her private key or become incapacitated there is a question over what happens to the future of their assets. By having a multisig, you can drastically reduce these kinds of operational risks.
The possibilities are endless, those are just a few common use cases of a multisig on Enzyme.