Gnosis

Here's our 2023 and 2022 Year in Review reports for Gnosis.

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Since the very beginning of Ethereum, Gnosis has been building out a broad and horizontal stack of interoperable tools to grow the crypto ecosystem; most of them have since spun out to develop on their own:

1. Gnosis Chain, an Ethereum sidechain designed for fast and inexpensive transactions;
2. Safe, the industry-leading multi-signature wallet application that allows groups and DAOs to invest in a distributed manner;
3. CoW Protocol, a DEX protocol that acts as a meta-aggregator and utilizes ring trading to help prevent MEV front-running; and
4. Zodiac, a tool built by Gnosis Guild that integrates DAO tooling features with Gnosis Safe to reduce centralization risk and promote governance initiatives such as integrated off-chain voting.

karpatkey was created out of sheer necessity

To get the most out of the boom of governance-tokens yield farming peak, Gnosis Ltd. shifted its treasury management strategies, taking low-risk liquidity mining positions in a controlled environment for most of its ETH (+150k ETH) and stablecoin holdings.

In November 2020 Gnosis Ltd. announced that it would transfer a significant share of its assets to the newly created GnosisDAO. The transition of Gnosis from a traditional for-profit organisation to a DAO brought up all sorts of coordination issues from a treasury management perspective that needed to be addressed.

As GnosisDAO migrated to implement autonomous open-source tooling developed by the Gnosis Safe and Zodiac teams, GnosisDAO needed to find solutions to manage its treasury assets efficiently. It needed to source a finance powerhouse that would adapt TradFi’s best practices to tackle the requirements imposed by a decentralised organisation's open and trustless nature.

A core unit incubated in Gnosis formed by Gnosis Ltd. and karpatkey members had been tasked by Gnosis Ltd. to take responsibility for the research, execution, and reporting of the treasury management activities, and in December 2021 GIP-20 ratified karpatkey as the official manager of the GnosisDAO treasury.

We inadvertently created an entire industry: the GnosisDAO treasury generated 53% of the top 65 DAOs’ yield in 2021, and karpatkey reports became a source of alpha for the industry.

Growing the Gnosis Chain ecosystem through finance

Under GIP-16, the Gnosis and xDAI communities have decided to merge their tokens and together develop the xDAI Blockchain under the name “Gnosis Chain” and establish an ambitious technical roadmap.

The development and sustainable growth of the Gnosis Chain have since become a top priority for the GnosisDAO.

Consequently, the scope of our contribution to the GnosisDAO has grown to take the Gnosis Chain to the next level, co-creating a safe, trustworthy ecosystem.

GIP-58 has officially extended karpatkey’s contribution beyond treasury management, including:

• GNO liquidity provision and maintenance: monitoring the liquidity provision on Mainnet and Gnosis Chain, checking the price impact for swaps;
• Performance analysis of the different bridges from and to the Gnosis Chain;
• Bridge GNO, adding it to exchanges and market make it on other networks;
• Gnosis Chain Incentives Program design and implementation;
• Cross-DAO Governance Participation delegated by GnosisDAO;
• Partnerships with protocols & DAOs: strategic token swaps, negotiation, and proposal presentations; and
• Development of money market liquidation keepers for Gnosis Chain’s money markets.