Private Safe Transaction Service

Private Safe Transaction Service

Proposal: Safe Transaction Service Private Mempool on Eigenlayer

Overview

The proposed solution addresses the inefficiencies and vulnerabilities of the current Gnosis Safe transaction service by implementing a private mempool network service. This service will run as an Active Validator Service (AVS) on Eigenlayer, providing enhanced security, scalability, and economic incentives for participants.

Problem Statement

 1. Storage of Signed Messages: The current Gnosis Safe transaction service centralizes the storage of signed messages for multisig transactions while signatures are being collected.
 2. Scalability Issues: The existing service has scalability limitations, hindering its ability to support the growing ecosystem efficiently.
 3. MEV Vulnerabilities: The centralized nature of the service exposes pending multisig transactions to Miner Extractable Value (MEV) attacks, creating opportunities for malicious actors to exploit the transaction data.

Solution

Private Mempool Network Service on Eigenlayer

 1. Private Mempool Maintenance:
 • Nodes within the network will maintain a private mempool, ensuring that signed messages for multisig transactions are securely stored and protected from external visibility.
 2. Staking and Governance:
 • Users will stake voting power in a smart contract to receive liquid staked Gnosis (LSG) tokens.
 • This approach retains governance power within Safe-controlled smart contracts, preventing dilution of control while enabling participation in the staking mechanism.
 3. Restaking on Eigenlayer:
 • Liquid staked Gnosis tokens are restaked on Eigenlayer to power the private mempool network service.
 • This creates an incentive structure where the AVS revenue is channeled back to the DAO, ensuring a sustainable economic model.

Economic Incentives and Revenue Distribution

 1. Revenue Generation:
 • The AVS will generate revenue through transaction fees and other service-related charges.
 • This revenue is collected and returned to the DAO for redistribution among staked token holders.
 2. Incentives for Nodes:
 • Nodes participating in the private mempool network will be incentivized through a share of the transaction fees and other revenues.
 • This ensures a robust and secure network of nodes, contributing to the overall reliability and performance of the service.

Advantages of the Proposed Solution

 1. Enhanced Security:
 • By maintaining a private mempool, the solution mitigates the risk of MEV attacks, protecting the integrity and confidentiality of multisig transactions.
 2. Scalability:
 • Leveraging Eigenlayer’s infrastructure allows for a scalable solution that can grow with the ecosystem, addressing the current service’s limitations.
 3. Economic Sustainability:
 • The integration of liquid staking and restaking mechanisms ensures that governance power remains intact while providing economic incentives for participants.
 • The revenue model ensures that the DAO benefits from the service, fostering a self-sustaining ecosystem.

Implementation Plan

 1. Development Phase:
 • Design and develop the private mempool network service.
 • Integrate staking and liquid staking mechanisms with Safe-controlled smart contracts.
 2. Deployment Phase:
 • Deploy the private mempool network on Eigenlayer.
 • Initiate staking and restaking processes for Gnosis tokens.
 3. Operational Phase:
 • Monitor and maintain the network service.
 • Ensure continuous revenue collection and redistribution to DAO members.

Conclusion

The proposed private mempool network service on Eigenlayer addresses the critical issues of security, scalability, and economic sustainability in the current Gnosis Safe transaction service. By leveraging Eigenlayer’s AVS framework and integrating a robust staking mechanism, the solution enhances the overall ecosystem’s reliability and growth potential.