Report: Savings Accounts and Safe Vaults (SEP42)

Safe Ecosystem
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After several months working on this SEP together with @Hopper - we’re excited to release the Savings Accounts and Safe Vaults Report.

This report explores the huge potential revenue (1-30M USD annually) Safe could generate by enabling the best earning strategies for the 16B+ USD in ETH and Stablecoins in Safes.

Below is a summary of the research. The Full Report can be read here.

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Key Takeaways from the Report on Savings Accounts & Safe Vaults

  1. High Revenue Potential for SafeDAO
  • Savings Accounts and Safe Vaults could generate $12.3M per year (Base Case), far exceeding current revenue from Native Swap ($1.5M/year) and Native Staking ($106K/year).
  • In a Bull Case scenario, revenue could reach $30M annually, making these features a significant driver for SafeDAO’s long-term sustainability.
  1. Large Untapped Market Within Safe Ecosystem
  • $6.29B in ETH and $10.2B in stablecoins are currently held in non-productive assets within Safes.
  • Converting just 25% of these assets into yield-bearing instruments could generate millions in annual revenue while increasing capital efficiency for users.
  1. Unified “Earn” App for Seamless Yield Opportunities
  • A single Safe Earn App integrating both Savings Accounts and Safe Vaults is recommended.
  • The app would curate the best earning opportunities for ETH and stablecoins, similar to Safe Swap, making yield generation accessible to all users.
  1. Strategic Partnerships to Enhance Competitiveness
  • SafeDAO should partner with platforms like Enzyme & Lagoon to develop Safe Earn, reducing development costs and leveraging existing infrastructure.

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  • Revenue-sharing agreements with DeFi protocols like Lido & Aave could lower end-user fees and improve competitiveness.
  1. Safe {Pass} Integration to Boost Adoption
  • Safe {Pass} rewards should incentivize usage of Safe Earn, following the success of the Morpho campaign, which increased deposits by 70% ($30.3M in inflows).
  • If Safe {Pass} Season 2 is delayed, a pilot experiment should be funded to kickstart adoption of Safe Earn.
  1. Future Considerations: Vault Safety Module & Safe Agents
  • A Vault Safety Module (VSM) could enhance security, allowing SAFE or an LP token to be slashed in case of hacks or depegging events.
  • Safe Agents could automate Safe Vault strategies, leveraging insights from Safe Agentathon 2025 to optimize returns.

In Summary

Savings Accounts and Safe Vaults present a massive opportunity for SafeDAO, both in increasing TVL efficiency and unlocking a high-growth revenue stream. A strategic, phased launch through Safe Earn, combined with Safe {Pass} incentives and ecosystem partnerships, will ensure successful adoption and long-term sustainability.

Next Steps
In the coming weeks, we aim to coordinate with the SafeDAO Oversight Committee and relevant stakeholders to explore paths to realize the Safe Earn opportunity. Input and suggestions on this thread are highly appreciated!

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Agreed.

Accessing yield opportunities directly from Safe and Safe accruing a share of the revenue from these opportunities makes all of the sense in the world.

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Great report! Thank you for the detailed analysis.

Creating a savings vault with whitelisted yield strategies that provide a safe sandbox for all Safe users to take advantage of would be a big value proposition to less sophisticated Safe users. If you limit the strategies, you also limit the potential risk to battle-tested protocols. Whether using a VSM or sourcing depeg + protocol cover, it should be possible to price risk between 20-30 bps on sDAI and stETH.

Providing safe, accessible savings for every Safe user can generate significant revenue for the DAO and make it that much easier to get Safe users into DeFi instead of just holding idle assets in their Safes.

Great work, @LuukDAO :clap:

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How can we accelerate this proposal? This is too good of an opportunity to wait on

When passed, this is the sort of thing we should bring ALOT of attention to

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Thanks for going through the entire report and sharing your sentiments @BraveNewDeFi and @TheEther2077

I see multiple options to progress this forward, and I am exploring various paths - which could, in theory, start in parallel.

Largest scope: Start a process to build a native Safe{App} with Safe{Pass} integration and start VSM development.

Smallest scope: Create a proposal to incorporate additional yield to end users and initial fees to SafeDAO using existing Safe {Apps}.

In any case, we’ll experiment with some of these hypotheses with the Ecosystem Vaults proposal, which passed in December (SEP 51).

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@LuukDAO Let’s create a proposal to incorporate additional yield to end users and initial fees to SafeDAO. If you are open, I have something already in proposal format we can build off as co-authors.

I have relationships with various DAOs that could source the yield and also just posted a proposal on Sky about this: http://forum.sky.money/t/asher-associates-proposal-increasing-usds-deposits-through-adding-sky-money-vault-to-gnosis-safe-dapp-ui/25898?u=mattison.

I want to add you as a co-author on Sky. More the merrier.

Safe’s Core Dev team can then implement, or we can source a dev team to execute the implementations.

This framework is the future of DAO business.

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You’re running extremely low on time. I just got done talking with some influencers and they’re taking this asset off their baord until this fee engine is in place, people are putting their captial in other projects, if enough time passes you can miss out on this bull run all together and delay progess greatly. @LuukDAO

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Following up here @LuukDAO

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Any updates on progress @LuukDAO

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@LuukDAO I messaged you about helping