Our first full quarter managing the Gnosis DAO treasury. Two things shaped it: we spent the quarter building out our risk monitoring, and that work got tested on June 1st when the Gnosis Pay exploit hit. Our monitoring flagged it, and the incident set the pace for the rest of the quarter.
Risk monitoring
We spent the quarter building out treasury monitoring. When the Gnosis Pay exploit hit on 1 June, our monitoring flagged unusual activity on Gnosis at 06:17 UTC, which is what triggered the incident response.
Gnosis Pay exploit
On 1 June an attacker exploited a signature-validation flaw in the Zodiac Delay and Roles modules, letting them queue withdrawals from accounts they did not control. Gnosis absorbed the full loss and all funds were restored to users. The post-mortem has more details.
On our side we temporarily pulled DAO liquidity out of the affected tokens that morning, and worked with the Gnosis and Monerium teams to contain the attack. We also spun up the signer infrastructure used to process user refunds.
GIP-151 redemption
GIP-151 gives GNO holders a one-time option to redeem their tokens for a pro-rata share of the DAO’s liquid treasury at NAV. We built the redemption contracts, the NAV snapshot process, and the web app at redeem.gno.now.
GNO buybacks
We continued the GNO buyback program into Q2: $1.46M of market buys between 16 April and 8 May. We paused buys with the treasury redemption proposals on the table (GIP-150, then GIP-151), holders now have a path to redeem at NAV. Buybacks will stay paused while redemption is live.
Capital deployment
The exploit response ate into the bandwidth we’d earmarked for active capital deployment, so active management hasn’t started yet. Treasury ETH sits in stETH and USD sits in sUSDS, so it’s earning baseline yield in the meantime, just not actively managed.
Active deployment starts in Q3.
What’s next
Starting active management of the treasury capital is our main priority. GIP-151 redemptions run their course through July. And we’ll keep hardening the monitoring stack and automating the liquidity management.