PR with Payload:
Abstract
This proposal seeks the BalancerDAO to take the following actions:
- Have the Balancer’s DAO main Safe claim the locked GNO in the GNO locking contract.
- Bridge the GNO from mainnet to Gnosis Chain (GC) using the Gnosis Bridge.
- Set as destination address karpatkey’s managed Safe, whose Gnosis Chain version has just been launched.
- Grant permission to karpatkey to stake GNO on Stakewise v3.
Motivation
Following a successful Snapshot vote in January 2022, the BalancerDAO and the GnosisDAO conducted a token swap, resulting in 9,051 GNO being added to the DAO’s treasury. These tokens, claimed by the DAO in 2023, have been idle for a year since the locking period expired on February 15th, 2023. Now that Stakewise v3 has launched on Gnosis Chain and offers GNO staking possibilities, it’s a good opportunity to put those idle assets to work.
We propose making them available to karpatkey for yield-generating strategies, specifically staking on the Genesis Vault, the Serenita Vault and the Nedo Vault on Stakewise V3. At the time of this writing, these vaults offer an APR ranging between 4% and 10%.
Justification
As mentioned in this treasury update, staking on StakeWise is the optimal choice for GNO allocation. Its non-custodial staking on Gnosis Chain offers an attractive APR without the complexities and risks of leveraged positions or providing liquidity to DEX pools.
StakeWise v3 is an enhanced version of the StakeWise liquid staking protocol. The new version features a modular architecture with an expanded node operator set, native unstaking, automatic rewards compounding. Additionally, the infrastructure upgrade for their overcollateralized liquid staking tokens (os tokens) enables greater composability with other DeFi protocols and strategies. To enhance capital efficiency and sustain yield generation, a future strategy incorporating the use of osGNO could be proposed.
Specification
Deployed contracts on GC
It’s important to note that a new Avatar Safe (also known as karpatkey’s managed treasury Safe, solely owned by the Balancer DAO) and a new Manager Safe (owned by karpatkey to execute approved actions on behalf of the Balancer DAO) have been deployed, along with the necessary Zodiac Roles Modifier contract , which includes the allowlisted permissions requested in this proposal. It is worth noting that the new Avatar and Manager Safes on Gnosis Chain have the same address as the existing ones on Mainnet.
The current setup on Gnosis Chain mirrors the Balancer’s DAO main Safe and the existing Avatar Safe on mainnet, with the addition of one EOA belonging to karpatkey, used to configure the entire setup. After the new configuration and permissions granted to karpatkey are audited, the next step will be to remove karpatkey’s EOA from the ownership structure, resulting in the same 6/11 scheme used for the other Safes mentioned.
As part of our internal due diligence and controls, we have deployed a Test Avatar Safe and thoroughly tested the staking & unstaking mechanisms of osGNO on Stakewise V3.
Technical Specification
Upon the passing of this proposal, the following steps need to be executed.
To be executed by the new Avatar Safe on Gnosis Chain:
- Remove karpatkey’s EOA as an owner of the Avatar Safe in GC.
The following payload #1 needs to be executed through the Avatar Safe, and this is the Tenderly simulation.
To be executed by the DAO main multisig on Mainnet:
- Claim locked GNO.
- Bridge GNO (total balance) from Mainnet to Gnosis Chain.
- Set as destination address the new Avatar Safe.
The following payload #2 needs to be executed, and this is the Tenderly simulation.
PR opened at: [BIP-696] payload to unlock n' bridge GNO by JeronimoHoulin · Pull Request #1291 · BalancerMaxis/multisig-ops · GitHub
Note: you can check that the receiver parameter in the bridge message is set to 0x0efccbb9e2c09ea29551879bd9da32362b32fc89 = the Avatar Safe on GC.
Subsequently, karpatkey will stake 9,051 GNO on Stakewise v3 and conduct monitoring / rebalancing / re-allocation to different vaults / exit strategies according to market conditions & liquidity.
Zodiac Roles Modifier Permissions Policy
New permissions
New permissions to be able to deposit, withdraw, mint and burn GNO on the mentioned vaults can be found in the Roles App Permissions Visualization tool.
https://roles.gnosisguild.org/permissions/gno/hLN8c3H4EvuSXMY9ko9Q31NQ3fwKCYBgnm2IDls7w