Open DeFi Partners with Gnosis Safe and Kleros to Create a Multi-Chain Governance Framework
Open DeFi DAO is working with Gnosis and Kleros to pioneer a multi-chain governance solution that balances security and decentralization with operational efficiency. With this solution in place, the Open DeFi DAO will be able to operate on multiple blockchains simultaneously, while enabling governance token holders to participate in governance no matter which blockchain platform their tokens are on. The solution will be the first of its kind, requiring the security of Gnosis Safe’s multi-signature vaults & treasury management suite along with the decentralization of Kleros’ arbitration layer.
When we designed the Open DeFi DAO, we worked closely with leaders in the space to create a multi-chain governance solution that is not only decentralized, but even more efficient then hosting the solution on one chain. Together with Gnosis and Kleros, we have developed a permissionless, secure, and efficient governance architecture that works across multiple chains. The Gnosis SafeSnap module will be used to enforce the correct execution of governance proposals on-chain, while Kleros ensures decentralized arbitration in case of disputes.
We believe that multi-chain DeFi will deliver a richer governance experience for blockchain projects, providing a non-tribal, gas-efficient, and wider reach to make governance a more inclusive place for all community members. Together with Gnosis and Kleros, the architecture we have designed is laying the groundwork for that. Also considering the growing liquidity fragmentation of governance tokens across multiple chains through the multiple asset bridges, we ensured that no matter what chain our token lives on, its core use-case of governing our DAO is still valid.
What’s unique about this solution is an emphasis on multi-chain capabilities as well as modularity and upgradeability of the entire system. As our DAO will inherently be driving ecosystem development across multiple different L1s, it is critical that members of these networks we are supporting have their voice heard when making decisions, rather than just the Ethereum community. The latter will be important for the DAO to embrace the changing blockchain ecosystem, and adapt with it in both a socio-normative way, as well as, technologically. Both aspects will help the OD DAO realize new multi-chain DeFi opportunities.
Multi-chain Governance Architecture
The multi-chain governance solution will launch in a “fail-safe” configuration that will ensure smooth operation of the OD DAO in the early days following launch, and will fully decentralize through successive infrastructure upgrades.
Since a significant proportion of liquidity and yield opportunities take place on Ethereum mainnet, it’s optimal that the OD DAO treasury will reside on Ethereum at time of launch. However, due to lower fees and higher throughput, other blockchains provide new DeFi opportunities and enable more social and governance activities to take place such as on-chain forums, and cross-chain communication through DAOs. For the OD DAO and its members to benefit from these opportunities, the multi-chain vote aggregation module will enable votes to be cast on other blockchains, aggregated on Ethereum, and actuated in a gas-efficient manner to allocate resources to short or long term strategies.
Precise details on the launch configuration and technical details will be revealed in the coming weeks. In the meantime, you can join our mission and connect with us on our channels for more updates in the development of our multi-chain DAO!
About Gnosis Safe
Gnosis Safe is the most trusted platform to store digital assets on Ethereum. Gnosis has been developing blockchain-based fund management solutions since 2017, earning a reputation in the industry for engineering and security expertise. Gnosis Safe is a smart contract wallet running on Ethereum that requires a minimum number of people to approve a transaction before it can occur.
Gnosis Safe is trusted by the crypto industry’s well-known players like Kyber Network, ConsenSys, Synthetix, and many others. As of May 2021, Gnosis Safe securely stores over $20 billion worth of digital assets.
Established in 2017, Kleros is an open source online dispute resolution protocol which uses blockchain and crowdsourcing to fairly adjudicate disputes. Development efforts are coordinated by Coopérative Kleros, a Société Coopérative d’Intérêt Collectif (SCIC) incorporated in France. All research and code development are open source and free for anyone to use.
About Open DeFi
Open DeFi DAO is a permissionless incubation DAO, formed to launch the breakthrough DeFi projects of tomorrow and generate long-term value by building and launching early-stage financial protocols, applications, tools, and infrastructure that support Open DeFi’s vision of a cross-chain DeFi ecosystem. The DAO will support and launch projects across all layer one ecosystems and explore DeFi markets surrounding new digital asset classes, including NFTs, data tokens and more. The goal is to develop a truly integrated multi-chain DeFi ecosystem that will open up liquid markets and establish a new operating system for finance.