Motivations:

• Treasury management is a core part of maintaining healthy DAOs
• Execution of token swaps is non-trivial and introduces vulnerability (e.g. who executes each trade, through which exchange)
• Price impact and fees make it difficult to achieve precisely the desired final ratio of tokens

Our Solution:

We introduce a one-click solution for rebalancing. Treasury managers simply submit the desired token ratios in the final portfolio to our protocol, which proceeds to identify the best set of batch trades to achieve the target, and outputs a concise summary on overall slippage and total fees.

In consideration of the potentially large volume of trade that a DAO may execute, our service achieves competitive rates by (1) routing the transaction to an AMM liquidity aggregator service, as well as (2) triggering an open auction on Layer 2. The open auction allows market makers who are willing to make the trade at competitive rates (relative to AMMs) to provide liquidity on the fly, creating a win-win scenario for both market makers and the DAO.

At the end of the auction period, the best bids from market makers are compared and combined with quotes from the liquidity aggregator. The hybrid trade will then be executed if the overall slippage is less than the slippage threshold specified. If not, the transaction will roll back and the locked funds will be returned to the DAO treasury.

Innovations:

• We support Ethereum mainnet but utilize L2 chain and cross-chain messaging protocols to minimize gas cost
• We aim to achieve good exchange rates by pooling liquidity between multiple auctions

East Rock Labs, 2022