Announcing Trading Strategy module for Zodiac

Safe Ecosystem
1

GM ladies and sers,

This is something we have been working on for a while.

TradingStrategyModuleV0 is a Zodiac-module for Gnosis Safe multisignature wallets.
It enables automated trading, or “trading algorithms” or “AI-agent”, for various use cases,
where the algorithm has limited access rights to open and close trades with the capital secured in Gnosis Safe wallet.

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The module enables making offchain trading decision by an asset manager, either automated (algorithm) or manual (discretional trading), and then verifying that these trades are within the given security rules. The security rules are in onchain TradingStrategyModuleV0 smart contract. When an asset manager initiates a trade, the trade is first verified by the module, and if it passes the verification, it is executed by the Safe wallet. Even if the asset manager is compromised, they cannot withdraw the capital or do harm to the liquidity providers of the vault.

  • The main use case is enable safe algorithmic trading (“AI agents” or “trading bots”) for vaults and private capital in Gnosis Safe wallets.
    The algorithm is hosted on offchain oracles called Trade Executors,
    which run the algorith logic in Python, and then submit the trades
    to the Safe wallet via this module using a special asset manager role.
  • This is a Zodiac framework-based smart contract
  • The module is designed to be used with Lagoon vaults,
    but it works with any Safe smart contract wallet or product
  • This module is a guard-design pattern based smart contract, which has complex dynamic
    logic to whitelist allowed trades (DEXes, trading pairs, lending protocols, assets and so on)
    limiting or eliminating the scope of the damage of what a compromised asset manager could do
  • The module has Python-bindings (see eth-defi package and high level interface to construct trades offchain,
    with a lot of developer experience and diagnostics tools, making it easy to use for offchain trading algorithms
  • For more information see Trading Strategy website

Note: This code is not audited. The Zodiac-module smart contract is called TradingStrategyModuleV0 reflecting the Minimum Viable product nature of this work.

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