About three weeks ago I published my first post in a series about UMA.
UMA standing for Universal Market Access, the article I did publish was Exploring an Optimistic Oracle from UMA and that was what I was referring to today on our X convo @anomadsoul.
It as the title suggested focused on their Optimistic Oracle.
Today I want to focus on something else from the UMA stable!
oSnap they went and did it again!
Offchain governance - Onchain execution.
How do you improve something that is already fluffing good?
You make it even better of course!
That is exactly what UMA have done with oSnap and DAO governance.
Before we start if you want to see UMA then check out their X profile
Let's delve into oSnap v2
oSnap launched in February 2023 and it has been helping some of Web3’s foremost DAOs embrace trustless governance.
The @UMAprotocol-secured solution uses Snapshot voting and Safe wallets to enable Optimistic Snapshot Execution.
This all means that DAOs can operate efficiently without having to forego decentralization. Something I am pretty sure that none of us want!
Don't you agree?
oSnap has just been revamped oSnap is now oSnap v2, and it offers DAOs a practical governance solution which combines offchain Snapshot voting with trustless onchain execution.
There are several user experience improvements which have been undertaken in oSnapv2 which increase security for DAOs.
It is pretty safe to say that the biggest update of all is automated proposal execution.
oSnap v2 makes the process smoother by removing manual execution altogether.
Yes you read it right!
removing manual execution altogether.
Yeah that is super cool.
❓ So what is oSnap?
In a nutshell oSnap is a trustless tool that allows DAOs to execute governance proposals in a secure and efficient manner.
It is powered by @UMA's Optimistic Oracle.
❓So how does oSnap work?
oSnap works by allowing proposers to post a bond to execute their proposal on-chain.
Anyone can dispute the proposal by posting a bond.
If the proposal is disputed, UMA token holders vote on whether or not to execute it.
Let's have a look at a wee Example ...
A DAO member submits a proposal to Snapshot to increase the DAO's treasury by selling 10% of its ETH holdings.
1 Proposal passes the voting period.
2 Proposer posts a bond to execute the proposal on-chain.
3 Anyone can dispute the proposal by posting a bond.
4 If there is no dispute, the proposal is executed and the DAO sells 10% of its ETH holdings.
5 If there is a dispute, UMA token holders vote on whether or not to execute the proposal.
6 The proposal is executed if the majority of UMA token holders vote in favour of it.
We can sum that in the diagram below!
Just look at this adoption in DeFi with more coming on a daily basis! Remember oSnap launched in Feb2023, so hitting $100 million is pretty fluffing cool I would saw!
If you want to learn more about UMA check out their oSnap site
Tнαɴĸѕ ғor vιѕιтιɴɢ αɴd eɴjoy yoυr dαy!!
All ιмαɢeѕ αɴd rαмвlιɴɢѕ αre ғroм мe, тнe мαd Scoтѕмαɴ TeɴɢoLoTodo υɴleѕѕ ιdeɴтιғιed ιɴ тнe poѕт тeхт. Note all images are from UMA discord.
@тeɴɢoloтodo.leo ғor (@тeɴɢoloтodo) Ocтoвer 16тн 2023