For more background and discussion, please see the incubation (https://forum.shapeshift.com/thread/incubation-integrate-uma-s-osnap-module-42927) and ideation (https://forum.shapeshift.com/thread/scp-133-ideation-integrate-uma-s-osnap-module-43105) threads.
Summary
This proposal suggests the integration of UMA's oSnap module by ShapeShift to decentralize and improve the on-chain execution of ShapeShift governance decisions.
Abstract
This proposal recommends integrating UMA's oSnap module into the ShapeShift ecosystem to optimize and decentralize the on-chain execution of governance decisions. oSnap streamlines on-chain voting outcomes and allows DAO members to propose and execute Snapshot vote results, validated by UMA's oracle. The incorporation of oSnap will provide the ShapeShift community with a transparent, decentralized governance process, while its language-based rules offer flexibility for custom rules and upgrades.
Motivation
oSnap provides a way for DAOs to decrease reliance on multi-sigs and provide communities an increased role in governance and execution of governance outcomes.
Specification
If this proposal passes, the integration of UMA's oSnap module involves the following steps:
- Add the oSnap module to the ShapeShift Safe through Zodiac.
- Set oSnap parameter values for the proposal bond and challenge period. These will initially be set to 100,000 FOX and 48 hours, respectively. In the future the challenge period may be reduced if the DAO determines that invalid transactions are being caught and disputed quickly and consistently.
- Configure the oSnap module with the ShapeShift Snapshot Space using the SafeSnap plugin by setting the
umaAddress value to the address of the oSnap module.
- Snapshot proposals can now use Snapshot’s transaction builder to include transaction data that can be proposed and executed on-chain when the Snapshot voting period ends.
Additional information and a video walkthrough on oSnap deployment can be found in the UMA docs: https://docs.uma.xyz/developers/osnap/osnap-quick-start
Benefits
By integrating UMA's oSnap module:
- ShapeShift inherits UMA’s network of validators who are financially incentivized to monitor and dispute invalid proposals.
- oSnap can prevent common DAO-related issues like treasury mismanagement and delays as it optimizes for transparency and efficiency.
- oSnap reduces reliance on core teams by handing control over to the community. Only one person needs to raise a dispute to stop a transaction that was not approved by the DAO from being executed.
- Adding oSnap to an existing Snapshot Space and Safe is fast and free. The contract has been audited by Open Zeppelin.
Drawbacks
Potential drawbacks of integrating UMA's oSnap module into ShapeShift may include:
- Depending on the length of the challenge period set on deployment of the oSnap module, this may cause a delay in transaction execution. UMA recommends a challenge period of at least 12 to 24 hours, although some DAOs may choose to make their challenge period longer. The initial challenge period for the ShapeShift oSnap module will be set to 48 hours.
- The current ShapeShift proposal process does not always strictly define the transactions to execute in advance, but a typical oSnap flow would be to create a bundle of transactions through Snapshot’s transaction builder, include them in the Snapshot proposal, and then simply execute the transaction bundle by clicking a button on Snapshot after they are approved. If the exact transactions for a Snapshot proposal are not defined in advance, or can not be executed all at once, this may require a more complex flow where the transactions are described in natural language and voted on, and then only after the vote concludes are the specific transactions created, proposed and executed through oSnap outside of the Snapshot interface. This might require extra work and testing to ensure that no additional risks are introduced. However, it is very similar to the current flow where transactions are usually created and executed by the ShapeShift multi-sig after a Snapshot vote.
Despite these potential drawbacks, we believe the benefits of integrating UMA's oSnap module into ShapeShift outweigh any challenges, ultimately providing users with an enhanced governance experience that is significantly more decentralized and trustless than using a multi-sig.
Vote
For: Integrate UMA's oSnap module
Against: Do not integrate UMA's oSnap module
