Gnosis Safe Now Has 20 Billion USD Locked In After Merger With Snapshot

Gnosis Safe Now Has 20 Billion Usd Locked In After Merger With Snapshot
Gnosis Safe Now Has 20 Billion Usd Locked In After Merger With Snapshot

The total value locked in the Gnosis Safe has now surpassed the 20 billion USD milestone. The news broke only a few days after Gnosis adopted the gasless governance voting technology by Snapshot.

Snapshot Merger Sends Gnosis Safe Flying

Snapshot was launched in August 2020 with the intention to replace on-chain governance voting due to Ethereum’s excessive gas fees, which deterred governance token holders from casting their votes. Since then, Snapshot voting became the standard for most of the leading DeFi projects.

Together, Snapshot and Gnosis have developed the SafeSnap tool, which, in their words, turned the Gnosis Safe multisig wallet into an “operating system for DAOs”. Several high-profile DeFi protocols including Yearn, SushiSwap, Synthetix, and Balancer have already announced to adopt the SafeSnap tool. Naturally, the Gnosis DAO itself will make use of the SafeSnap and Gnosis founder Martin Köppelmann is confident that DAO management dApps will join as well.

According to the blog post announcing the launch, SafeSnap aims to solve the dilemma of either keeping the expensive on-chain governance voting system on Ethereum or using Snapshot, putting the funds into the hands of a partially centralized council of multisig stewards. Instead, SafeSnap can issue a payment from the multisig wallet upon a governance vote, which enables DAOs to remove the multisig council entirely, or keeping the council with veto rights as a safeguard.

Gnosis has also launched the Honeypot DAO as the first test case for this governance scheme. Honeypot has received funding of $50,000 to create a bug bounty program for Gnosis Safe and SafeSnap.

Huge Development Effort in the past months

According to the blockchain research lab Santiment, Gnosis has been the most actively developing project in February 2020 and their efforts start to pay off. Furthermore, the Gnosis community is currently discussing turning the OWL payment token into a stablecoin, but so far, there hasn’t been much support for the proposal.

Some more highlights from the past month include the launch of Gnosis Safe on the Binance Smart Chain, and an effort to get the GNO token listed on Cream Finance. In terms of development, there is planning for a graphical interface for conditional prediction market tokens, which is the flagship product of Gnosis. The prediction market Omen, which uses the Gnosis Conditional Token Framework launched on xDai Chain in February as well.

Earlier this month, Gnosis Auction launched as a new product, which offers various methods for token distribution as a means of project fundraising. The first project to make use of these functionalities is, a layer 1 blockchain designed for use cases around energy trading.

The price of GNO has been steadily climbing since July 2020. At the time of writing, GNO is ranked #164 with a market cap of 228 million USD. Given the 20 billion Dollar TVL of Gnosis Safe and that Gnosis will become a key partner for many of the leading DeFi projects thanks to SafeSnap, the current trading price of $151 might still be undervalued.

Gnosis Safe Now Has 20 Billion Usd Locked In After Merger With Snapshot
All-time price chart of Gnosis DAO (GNO). Source: CoinMarketCap.