Summary
Timeline: From 2025-04-22 To 2025-04-24
Total Issues: 1 (1 resolved)
Low Severity Issues: 1 (1 resolved)
Scope
OpenZeppelin reviewed the draft proposal titled “A Growth-Earmarked Treasury Strategy for Compound”. As part of this review, the Avatar Safe was analyzed in its currently configured state as located at 0xeB6332bbB14b1488eFb3A395B8EBF6a6904C4241 in block 22331721 on the Ethereum Mainnet. However, the proposed yield strategy was not reviewed for feasibility.
Overview
The proposal defines a Growth-Earmarked Treasury Strategy for Compound. It is intended to complement the reserve management done by Guantlet by using COMP to generate a targeted 15% annualized USDC-denominated yield. Afterward, the USDC yield will be deposited into the USDC Comet Market to generate additional yield. The cUSDC will then be used as underlying for put options to further enhance the yield generated.
The proposal asks for 37,000 COMP (~ $1.6m USD at the time of this review). In order to allow the DAO to maintain a measure of control over the strategy, Avantgarde has proposed the use of an Avatar Safe with the Roles module enabled. A Manager Safe with a 2/4 threshold will be given permission to execute the approved function calls required for the strategy execution. The signers of the Manager Safe will be MYSO, Avantgarde, and two representatives from the CGWG (PGov and Arana Digital). It is noted that the MYSO contracts have been audited. In addition, the Zodiac Roles module used has also been audited. The proposed actions will transfer 37,000 COMP to the above configured Avatar Safe.
Privileged Functions
The Roles module restricts the calls that the Manager Safe can make to the following target-function pairs:
- USDC:
approve - USDC Comet Market:
supply - USDC Comet Market:
withdraw - Comet Rewards:
claim - COMP:
approve - MYSO Router:
takeQuote - MYSO Router:
withdraw
Trust Assumptions
It is assumed that the EOAs that are signers on the Manager Safe have been confirmed to belong to the intended parties. It is also assumed that the Compound Timelock would be the sole signer on the Avatar Safe.
Low Severity
Number of Signers Incongruent With Proposal
The proposal notes that a 2/4 Manager Safe will be used as a means to execute the strategy using the funds in the Avatar Safe. However, the current threshold for the Manager Safe is 2/5.
Consider reconfiguring the Manager Safe to the expected number of signers.
Update: Resolved by removing signer 0xF75a212A5d5c3e208B9694bc854dEa7A942908eC
Conclusion
The use of an Avatar Safe and the Zodiac Roles module allows the DAO to have greater control over the allocated funds. The review of the draft proposal identified a single low-severity issue. In addition, the setup and effort in providing a draft proposal is appreciated.