Grant Title: Tally Recipe for CoW Swaps
Author:
Raf Solari of Tally. raf@tally.xyz
About You:
Tally (tally.xyz) is the leading interface for on-chain DAOs. DAOs use Tally’s frontend and API to create and pass proposals. DAOs on Tally run on the Governor smart contracts. Tally’s mission is to make it easy to use DAOs with strong, on-chain trust models.
Additional Links:
Website: https://tally.xyz
Twitter: https://twitter.com/tallyxyz
Github: Tally · GitHub
Grant Category: Integrations and protocol order flow
Grant Description:
Tally will add no-code flow to the our Create Proposal Tool that allows non-technical users to create, propose, and place CoW Protocol orders from DAO treasuries. Orders created on Tally would use the Milkman order type to increase the chance that DAO swaps have good execution.
We would add a ‘Swap’ action to the list of options in our Create Proposal Tool (pictured below).
We would build a custom UI for doing a swap (pictured below).
We would build a UI for displaying Swap Proposals on the Tally Proposal page
Grant Goals and impact:
Our primary goal is to allow DAOs to do swaps directly from their treasury, without needing to trust an intermediary or custodian. This feature would drive volume to CoW swap and help DAOs manage runway and hold the right mix of treasury assets.
Milestones:
- Design and user testing (1 week of work)
- Create a swap recipe using CoW Protocol (5 weeks of work)
- Show swap on the proposal page (1 week of work)
- Testing (1 week of work)
Grant Timeline:
8 weeks of work.
We can do some of the work in parallel, so we hope to deliver the grant in less than 8 weeks.
Funding Request:
- 30k xDAI
- 150k COW, linearly vesting over one year
- Additional volume-based incentives in COW
Budget Breakdown:
The funds will be used for product design, development and testing. 40 hours of design, 30 hours of testing, 240 hours of development.
Part 1: Design and user testing - 50 hours at $150/hour: $7500.
- Mock up the Swap action UI and the Swap creation UI, and Swap proposal UI
- Gather feedback on the mocks from users to make sure that the interface is clear
Part 2: Swap action and swap proposal recipe development
-
Design and development of UI for entering information about the swap - 40 hours at $150/hour: $6000.
- Dropdown to pick the asset to sell from the treasury
- A form field to enter the amount of asset to sell.
- Form field to pick the asset to buy
-
Calls from Tally frontend to CoW APIs show asset prices and price checkers - 80 hours at $150/hour: $12000.
- Tally will generate price estimates of assets to sell
- Tally will shortlist price checkers from Uni v3 and Chainlink. Tally will also allow the address of a custom checker and “No checker”
- Tally will use CoW Protocol’s API to estimate the assets received at current market conditions. Tally will show that to the user.
- Tally will encode the calldata client-side
- This will eventually be moved api-side to enable api users
- Tally will call its proposal API for saving the calldata as a draft
- Tally will generate price estimates of assets to sell
-
Proposal simulation - 40 hours at $150/hour: $6000.
- Tally will simulate that the proposal will create the order without errors. We will use a simulation tool such as Tenderly.
-
Order Preview - 40 hours at $150/hour: $6000.
- Tally will estimate the price that the order would execute, if it executed now. We will do this by fetching quotes from solvers.
- Tally will show an error if the order won’t fill at current market conditions
Part 3: Showing a swap proposal
-
Proposal UI - 40 hours at $150/hour: $6000.Once a swap proposal has been created on Tally, it goes to vote. Tally will show some information about the swap in on the proposal page to voters:
-
Assets to buy/sell and the amount
-
Simulation of the proposal
-
Estimate of the swap purchased. Plus, a disclaimer that execution will change from the current market conditions.
Part 4: Testing - 30 hours at $100/hour: $3000.
- Tally will test the recipe on mainnet to make sure that orders execute successfully
Proposed funding schedule:
| Milestone | Funding |
|---|---|
| Upfront payment | 15k xDAI |
| Completion of all 4 parts | 15k xDAI and 150k COW, 1 year linear vesting |
| 12 months after completion | Performance-based reward, see below: |
We propose this performance-based reward for swap volume driven to the protocol:
First $10M volume: 60k COW
Additional $50M volume: 120k COW
Additional $200M volume: 240k COW
Volume milestones must be surpassed within 12 months to be eligible for funding.
All COW tokens granted will be subject to 12 months of vesting.
Gnosis Chain Address:
(to receive the grant)
Address gno:0xfd4c2579664286ae699c5e25aeccfb5df58e8d85
Other Information:
- We believe that CoW Protocol is the best way for DAOs to do a swap. On-chain AMM swaps are vulnerable to front running, because DAO proposals are public. To do off-chain trades, DAOs need a custodian and an intermediary, which isn’t a good trust model for them.
- DAOs that use Tally collectively hold ~$10B of treasury assets
- ENS successfully did a $15M CoW Swap from their treasury in February using Tally. ENS delegates hand-coded the swap proposal. We expect that making this process easier and safer will lead to more DAOs doing CoW swaps.
- Tally has built successful recipes before. The Tally no-code transfer flow has been used to transfer $80M+ in DAO treasury assets since launch in March 2022.
- Items that would be out of scope for now, but we could consider them in the future:
- Delegate the order cancel role to a trusted party. We will put an example of how to create a proposal to cancel an order in our docs.
- Support for slicing up the order using TWAP
- Show whether the order was filled or killed in the Tally UI
- Support for other networks besides mainnet
- We will open source as much of the CoW swap code as possible under an MIT license, but some of the glue code will touch parts of Tally that are not yet open source. We aim to open source at least 80% of the code covered by this grant, including the “Recipe” that constructs and encodes transactions of CoW orders. Our goal here is for our work to be useful to future applications when integrating CoW Protocol.
Open source
We will also publish an architecture diagram of how the pieces fit together. Here are all the pieces that we’d build for a Recipe, and which ones we can open source:
Frontend Swap Recipe class
- This class will be fully open-sourced.
- This is the engine of the recipe, it is responsible for encoding user inputs into requestSwapExactTokensForTokens (including priceCheckerData) on the Milkman contract.
- We expect this class might be reusable for other frontends that need to create swap proposals
** Client calls to Tally API to get a DAO’s available swaps **
- This GET request will be fully open-sourced.
- It fetches a DAO’s treasury balances.
- It queries CoW API’s
native_priceendpoint with results from b to generate a list of sell tokens. - Returns sell and buy token lists.
React components to show available swaps
- There isn’t a good way to open-source this component, because it’s coupled to many other things. The UI looks similar to the “select a token” component on https://swap.cow.fi/
User selects a swap pair
- We will open-source the UI for this component.
- Some of the glue code for this component doesn’t make sense to open-source
Client calls Tally API to get a swap quote
- This GET request will be fully open-sourced.
- It queries CoW API’s quote endpoint with the values on the Swap Recipe class instantiated in 1
Client populates React components with the response from the quote API
-There isn’t a good way to open-source this component. It is also coupled to many other things. The UI looks similar to the swap component on https://swap.cow.fi/, so if someone rebuild this component, they can start there.
User saves proposal
- This will be fully open-sourced.
- The calls to
encodeForBlockchain()orencodeForAPI()on the Swap Recipe class if the user is saving a proposal or a draft, respectively.
Referral:
Some of the team members building CoW Protocol mentioned the grant program to the Tally team at ETH Denver.
Terms and conditions:
Include this line in your grant application:
By applying for this grant, I agree to be bound by the CowDAO Participation Agreement 2 and the COWDAO Grant Terms and Conditions 4, with the caveat from above:
We will open source as much of the CoW swap code as possible under an MIT license, but some of the glue code will touch parts of Tally that are not yet open source. We aim to open source at least 80% of the code covered by this grant, including the “Recipe” that constructs and encodes transactions of CoW orders. Our goal here is for our work to be useful to future applications when integrating CoW Protocol.
