MOST SECURE WALLET In DeFi: Gnosis Safe Multisig Overview and Setup

Transcript

[Music] d5 slate team [Music] what's up y'all real quick if you like the d5 state content on twitter and youtube and sub stack please please give us a like and a subscribe on this video on youtube and join our channel join the community we'd really appreciate it we're pumping this stuff out for you all as much as we can and we really enjoy the support and the community that we've built thank you very much enjoy what's up y'all we are here today on a lovely wednesday morning here for me in the states afternoon evening for lucas over there in europe and we are getting after today to go over

what is a multi-sig wallet how to use it what what this safe can do for you um it's kind of why it's it's really important concept why all these d5 protocols use it for governance um what's going on here with the safe so what what we're going to do today is we are here with lucas from gnosis safe he is going to help us walk through how to set up a safe uh questions he's going to answer some questions that i have and we're going to work together to create a safe um and show you all how to do it in the safest cheapest and most efficient way possible i'm stoked we we're already using a safe here on defy slate but i i'm really curious how to expand the capabilities um kind of on what's possible in

governance and with more people and signers and all sorts of stuff so if you haven't if you haven't used a safe yet this video is for you if you have one but but you want to see more detailed explanation this video is also for you so thanks for watching stay tuned and how you doing lucas hey good how are you good good uh a little worked up today things are all over the place the markets are going down i i think lindsay lohan's tweeting about bitcoin so just mania yeah it's usually the top signal if uh celebrities start uh like shilling crypto so i'm a little bit uh careful but let's see yeah it's good stuff uh so real quick if you

want to if you just want to break down kind of how you got to gnosis we mean i would love to kind of hear about your background before we jump in sure uh i joined gnosis about two years ago uh i've joined as a product manager in the knows the safe team mostly safe is basically the asset management solution that moses is building i've been in the team since two years building up the the product suite and yeah went through different waves and definitely the past few months were crazy being at moses and seeing basically how nosy safe gained a ton of traction and is storing quite a lot of funds today it's uh we can see that over here uh it's actually this is not updated number

it's it used to be 8 billion now it's 15 billion u.s dollars and uh like more than two percent of the entire ether supply is also stored on those is safe so it is quite essential infrastructure component of ethereum so far and i'm just super excited working on this project nice that's awesome yeah that's a that's it that's a huge number especially that percentage of eth locked up um all right so why would somebody want to create a safe well you know for those who are watching you know why should i create a safe yeah so no safe is definitely not the first thing you're doing when you're getting into uh crypto or d5 uh it's it is something that's important once you

uh get to a certain amount of funds where you need a little bit more security than just having like your like a hundred thousand us dollars on a metamask account no one wants to do that even a ledger device it's not the the most secure option to be honest like you have a hardware wallet uh if you lose the the device your funds are gone but of course you have your seed phrase backed up but then there's just this one string of words which you hopefully have in a secure location then you need to think basically how can i make sure no one gets access to the seat phrase how can i make sure that i will always get access to the situation so there's all these

considerations one needs to do when you have more than a couple of uh hundred dollars in d5 and that's basically where gnosis is coming into play because we uh support moody signature which means that your account is not just controlled by this one seat phrase but can be controlled by multiple seat braces which can be different people that own seat races it can be yourself it's having your c traces distributed across different latch devices different metamask accounts whatever you want to use you actually support a bunch of different signs that you can use this way so it's like a way how you can make like a multi-factor account or a

multi-person account and really level up your security beyond what most people use yeah i mean that's certainly the biggest pull for me um and yeah i think for most users is the security aspect basically being able to put you know have even if it's just you you can have two computers with uh accounts on both computers and have them both be a signer for transactions you know you can you can have best of three kind of best of five best of nine right you know it it yeah it allows you to have a secure um kind of ecosystem for for your funds i yeah i really enjoy it and also what what is helpful for us on defy site is we it allows us to share

a combined trust with the team members knowing that we have funds that are between us both that we both have to agree upon or two of three to send and to use um and so it really kind of creates this uh kind of cooperative mindset much less than uh there's just one bank account with like one sole owner or one wallet with one owner um cool yeah and we also see like a bunch of different new use cases for collaborative fund management popping up it's not just like venture funds where there's multiple people it's daos so completely decentralized organizations it's just loose collectives which just manage some some funds for a certain use case but then the funds are getting distributed again

so it's it's interesting how this multi-signature scheme can actually be applied for individuals multiple people companies like all kinds of use cases yeah most definitely cool so uh i mean you can see up here that we've got a bunch of uh projects uh using nosy safe it's it is mostly used by by companies today because they required this multi signature but as mentioned there's also just individuals using it if they have a lot of funds they need to store just recently we had bitfenix so one of the major exchanges they're starting to use notice safe and they just basically have all their cold storage now

on it so we also see like major exchanges starting to use it and basically notice safe is this smart contract account which on on the contract level has all the logic how the funds are getting accessed and you can interact with it through our interfaces so we provide a web interface uh that's basically the most powerful way to interact with your nosy safe account the desktop app it's basically the same as the web interface but you can actually download it meaning you reduce some some risk factor if you are interacting with a web application there's always some some risk involved also websites can go down but if you have an app downloaded you can make sure

it runs all the time and we also have this mobile app which we launched recently in october last year and which is getting more powerful every day today it's basically a way to track your assets on the go you can also confirm transactions so you can actually have one of designer key be this this mobile app so you don't need to have your ledger device uh carried around all the time or be uh yeah dependent on your your computer where you have maybe your metamask account uh so that's that's also going to be interesting how the mobile app is is going to get more powerful where you can uh like do more and more interactions do more even even like initiate transactions maybe at some point from mobile but yeah that's that's those three ways

how we interact with with gnosis save and yeah i mean i could just jump in and show you how we create and those are safe it takes just a few seconds actually yeah real quick just a few things a few a few small comments on the on the teams that you have on the site that are using the gnosis safe this is kind of like the way in which they are able to decentralize and i kind of put quotes on that um their their governance and their fun controls um and are and they're kind of able to basically have it so hey they can't have a single point of failure and get their treasury hacked or get their um you know their pools hacked and also the team

the team can also share the multisig or the council or the governance um you know like the multi-sig holders use it to you know initiate transactions based on uh proposals that have happened in the in the governance is that kind of like the right track there yeah definitely i mean there's just the projects that have their own treasury so their own company funds they want to manage they used to save for that but there's increasingly also these like decentralized organizations yeah such as yearn which are using nosis safe to basically manage their treasuries and what's going to be super interesting in the future is uh when currently it's basically uh like a few people a few selected people

from the community that are set as signers of these mostly safe accounts but in the future it will also be possible to have basically all these projects have their governance token and they can have some proposals going on there and it will be possible that the safe is actually being controlled directly by by these governance tokens and we're super excited exploring those uh opportunities together with different dows and yeah we i think we're going to see quite some interesting concepts there this year that are leveraging those to save and where basically then the nosy safe account is basically becoming the the avatar of this community where uh all the the fund executions are being made on right yep all right yeah let's dive into

creating a safe and uh obviously for those who are watching this is completely non-custodial this this isn't as like you know you're going into like a binance account or you know anything like that this is like your wallet you know your uh you know your safe so walk us through kind of how we would uh set it up what we need to get started yeah and maybe some disclaimers here uh i mean first of all no investment advice but also uh like self custodial wallet means that uh you're not dependent on anyone but also that you are responsible for everything you do you are holding your keys if you do something wrong with it no one will be able to recover your funds and

yeah with great power comes great responsibility i would say so yeah we're here at uh basically the the home page of the the safe web app and the first thing you got to do is connect the wallet or connect the signer wallet i must say so we support a bunch of wallets that you can use as signing wallets as mentioned you can have like multiple lecture devices controlling uh mostly safe or like uh your poor days wallet or like whatever you would like to use i mean everyone has their own preferences some prefer more convenient solutions such as fortmatics and want the most secure options such as the hardware wallet so we try to support as many as possible so let's

just go with metamask because for demos that's usually the best best option so up here you can see i connected my meter mask account uh that's the 6c81 uh i'm on rinkeby by the way just to speed up things a little bit and here i can see the second step is now activated i can create a save or i can load a save if i've already created save for example on a different device i have an ethereum address a safe address that they could just import here but for the sake of the demo i would create a new one and now we're in this wizard i'm zooming in a little bit yeah oh there it is yep keep going

all right so first things first is that i would have to give a name to my save and now we're very cautious on privacy with nossy save so the name that you give here is actually never leaving your device we store it on local storage in your browser so i can say this is my secret hypnosis safe no will no one will ever see that name anyways uh so i get the name and now we're basically at this step where we define the initial logic how this nosy safe account is being controlled so here it would just take my noses my metamask address as one of the signers i could exchange this with a different

one but i would just keep that here it also detects a name that i've already stored in my address book we'll come to that later so yeah so i've got one signer here i could add more if i want i would just showcase this here by switching to a different metamask account up here and importing this as the second second owner this is second owner again the name that i give here no one will will ever see that uh and finally i just say what threshold is being used uh which basically means how many of these two signers will have to ex

confirm every transaction that i want to do on this notice save so i can set up a save with five people and say three out of those five will have to confirm any transaction and basically there i can fine tune the security uh level that i want to have of course the more confirmations needed is usually more secure but this also means that if i have five signers but then one of the five signers is losing their their private key their their account their ledger device whatever uh they they would not be able to to do any transactions on this safe anymore so it's always better to not have like the the max

amount of sinus required so in this case i would say one out of two if i have maybe three sinus i would maybe say two out of three would have been a good option and yeah but they're really yeah yeah yeah as we say so you know there's no this isn't a financial advice you know conversation here but if we were to uh offer an explanation for like the best way to set up the wall you would never basically do two of two or three of three it's always one less or some amount less in case one of the addresses involved is hacked lost the person um you know goes off the grid or such

it it basically gives you kind of a backup yeah definitely so for example for my own noses safe i'm not giving away too much here but i use a 3 out of 6 configuration so i have some some keys that are very secure that i would even take some time to get to and i've got some more convenient keys and just the way i set it up it means that i can always easily access my funds but i don't need to uh to compromise on my security because it's actually pretty hard to hack all of those three keys that are required to do anything but yeah it's it's really up to anyone that that creates a safe to to take the time and think about what

for for their personal situation what would be the best option so if we were trying to create a safe with me you robbie and you know two other dudes or two other girls what what what we would need is we would need uh you know their name and their address so so you know to get us started we would we would we'd say hey you know what's your what a theorem address do you want associated with the safe you know just text it to me i'll put it in the safe and i'll add you as an as another owner um you know so each person that you want in the safe they'll they'll though they're required to to give their own ethereum address and then you know as the safe owner whoever whoever would choose to create the safe whether it's you and all your

addresses or it's you and other people um you know you would just then do what we just did input their name and their address name and address um and then as you said set uh the transaction to require um always one or two less of the total owners based off how you guys have agreed whether it's you and others or you and yourself as you explained pretty straightforward super easy ui interface um yeah i mean let's go yep maybe one last thing to to add we also support dns names so i put in here save to test yeah and it would just resolve to the right address so if you're using ens

that's maybe easier to to than like copy pasting those addresses yeah yeah let's let's go ahead and create this save so here in the last step we just have another review where i can see okay i got a safe that has two safe owners that's andrew and the second owner it's controlled like the threshold is one of two so actually either andrew or the second owner could do any transactions if i would add a third owner and and up the the threshold to two then two out of those three would would have to sign but yeah then it's it's just about uh like deploying the actual account because what we do now here is actually

deploying a smart contract on the theorem blockchain uh because uh we yeah because of that you will have to pay some transaction fees uh so make sure to have some effort in your signup wallet uh because it's a completely trustless and open source solution uh we like basically we leave this up to the user to to do the the contract deployment and it's also like a security guarantee that it's not like like an external company creating this account it's actually you yourself by assigning this transaction boom right so we're here in in the main interface uh on the left you see the different sections so we've got

assets uh this means you here you will see all the assets that you will send to the account um so far i don't have any assets on it we also support collectibles uh um i also don't have any nft's here but if i would be like um nft curator or i i collect some some stuff then i could also send them to the safe and they would be displayed here with some nice images um yeah that's the assets then the transaction list here i just see any pending or past transactions we're currently reworking this this entire list and it's going to be quite quite some exciting new features

in there so look forward for that but so far it's like i can see i just made one transaction here that's actually creating this save but as we will go along and make new transactions that will just pop up here and uh this is also the place where i would come as an additional signer if i have a threshold that's bigger than one to basically give my confirmation for a certain transaction then that in that case there will be a transaction here which says pending i could go in and and there's going to be a confirm button and i would just confirm this way so every person who is uh whose address is associated with the safe when they come to nosissafe.io

and they connect their wallet this they would see the same exact ui as the other person you know uh yeah yeah i mean right now i'm connected with this address yeah if not if i haven't loaded the safe yet um i can maybe go back i would have to go through this wizard here because i i need to add the safe first of all yeah but afterwards i just have it in my list here where i've got like a ton of test accounts actually and uh they would be able to just access it that way and yeah if you're a signer of a safe and say i made it and i got your theorem address from you and i made it what i have to do is i have to i have to tell you the safe name and i

have to copy and paste the ethereum address up in that top left corner of the safe give that to you so that way that you can go in loaded load an existing safe as you just showed us and then you would be granted access and then from there it's going to be saved in your uh in your in in your list but as a signer who didn't create the state you have to go with the address of the safe which would be provided to you by the person who did create it and then load it up one time and then from there on out you have it exactly cool i think you're on transactions or address books or apps or something yeah uh address address book this is now not really pretty because i have done too many demos but here is the

place where i could add any ethereum addresses which i didn't want to be displayed in this not really readable format here of like a cryptic ethereum addresses but i actually want to give them like real uh like real names yeah um and i could just go ahead uh give a name uh paste an address i want to to have in the address book and just add it that way and then it will just use this name anywhere in the interface and yeah the maybe the most exciting uh part is this apps tab because here i mean one thing is just storing your assets securely but of course nowadays with like ton of like defy opportunities

we actually want to put them to work so we provide different ways for that but but like the main way i would recommend is these apps these apps are are built by the uh the community by the actual protocol teams uh this is here on wikipedi so there's a few uh like apps that aren't really live yet but if we go to mainnet over here you can see basically the selection we have today so you have some options to basically trade with your assets with the one inch exchange separator exchange uh yeah like a bunch of exchanges we have but also other defy opportunities such

as taking snx tokens um yeah putting your your your funds into pools with uh you're involved uh so on mushroom finals um and stream your money so save your for example allows you to uh stream your money by the second so you basically send some money to someone else but it's not being sent right away but actually over a certain period of time like every second just a tiny bit of your assets is getting transferred over so that's quite an interesting thing and you know is it good for you know a safety and security aspect but it's also um you know it's also used you're able to

to use it for you know all sorts of apps and everything like that let's hop back onto the uh on to test net um [Laughter] yeah we don't want to spend those uh conduction freeze man big noses safe wallet man over here flexing on us on main net nice okay cool so now we're in settings so yeah you can change the name here yep so this name is just displayed up here again it's not not shared with anyone else else in the settings we've got the owners which you can inspect here you can actually change your owner's setup after you set up your save

so maybe some people are familiar with how multi-six work on bitcoin there what you do what you define in the beginning is basically what you're left with uh for the entirety of the existence of this save of this multisig but here with notes is safe i could just add a new owner yep let's do uh just save the test dns name to and and just say now i've got three owners and two out of these three owners need to uh confirm any transaction yeah and maybe let's just do that um this this would mean i would have to make an unchained transaction so i would have to confirm on my standing wallet spend some

some gas which unfortunately is quite high right now but after i've done that i see here in my transaction list i've got a new transaction which is modifying the settings and once it's through it would mean that we have an additional owner that's controlling the save and yeah you can see here now we've got new owner which is also part of this confirming list um yeah and so and in this in this screen right here this is also what you guys will see when you try to send a transaction like if you try to send some eth out of your safe or if you try to you know use ave or use a platform you'll see this exact thing

as as well and this is kind of how you're able to confirm or you know accept or reject the transaction so maybe we can just do a quick little test if you will um yeah so we'll get some eth in there and then we'll try to send some out and then um yeah we can see because that's kind of like the last most important part is like okay how does the actual confirmations work um yeah i i think you were still in settings though while we wait for that east to come it might just be there already though because we're on test yeah so the thief should be sent out with metamask so it might take some time until it's actually confirmed on the blockchain but afterwards we would see

here an awesome incoming transaction there it is here we got this one winky beef that i sent we also support fiat values so we've got some oracles in place uh making sure that you actually know how much your assets are worth so in this case uh ether price is uh at a quite nice price right now um yeah nice cool so here you also see basically that we display any incoming transactions that are coming so i see i got from from my metamask account is blue little circle i got this one e4 transfer yeah all right so let's try to send one out and then kind of show how we have to

accept two out of three now yeah do you have a rinkeby address that i could share or i could just use any random one yeah i mean you have your yours both um so here we can send some funds uh i've actually got some some random addresses i could use so let's just say i'm a malicious owner now one of those three three guys wants to basically empty out the noses safe yeah and that's going to be this this andrew guy and he sends ifer and he just sends everything that's on the safe uh so we've got this review screen here if i'm a pro i could go ahead and set the transaction on uh the gas limit and so on

if you're not if you don't know what i'm talking about you don't even have to worry just press submit and yeah i need to sign this transaction this is not yet actually executing any transaction because we have set in the in the settings we actually have a two out of three threshold so any any transaction that gets out actually needs to be confirmed by two people you can see that here there's a new transaction that sends out one ether to andrew andrew was nice enough to already confirm that but the other two owners yeah might not be as happy about this so let me just change quickly to one of the other

owners um this one you can connect again with metamask and yeah we definitely need to clean up these notifications up here but now i'm logged in as this second owner the green one here and so i've got two options now i can either confirm or reject this transaction obviously i don't want that android is running away with all my funds so i'm gonna recheck and um because i'm connected now with this android account i should be prompted in a bit to sign this transaction yeah so even even if you reject here the

third person will also have to reject or accept to to make the final move um so yeah so if you did want to confirm this since you were since it's now 2x3 andrew and you it would go through but if you reject here obviously it's up to the last person um and if they're if it's if it's really a malicious act they would reject as well um or if they're if they're conspiring against you and you're you're on the way out then maybe you're on the way out but um yeah so that's dope and i mean that is like that little explanation like the last two minutes is like the like on the most narrow scale on this broad idea of a multi-thing that's it is having the ability to have basically people

or you in different accounts that you trust basically having to sign this transaction and say yes i i approve of this and i'm basically two-factor authentication that i am approving of this um and that is basically where the huge aspect of security comes in um and i mean that's what makes this safe extremely attractive yeah for sure especially when you interact with t5 and there's a lot of money on the line uh you you just want to have this this trust uh that that comes with having multiple people look at a certain transaction and yeah even if it's not just even if you trust other people it's still good to actually have them

actively confirm anything you do with some shared funds that we do yeah for sure for sure um okay well what what do we miss um maybe just one thing um like you see on i showed like that a bunch of apps that we support for for d5 stuff yeah but uh we actually support pretty much everything that's out there and that's due to this wall connect up here and for those that are not familiar with wall connect that's basically a protocol that supports the communication between a wallet and the dab so most depths such as unisport if you're connecting a wallet up here

they have this wall connect option and what this would do is that it shows this qr code and you can basically copy paste this qr code in here so with with most apps you actually have a designated button down here that just does that and you can connect this way to any any dap that's not like natively supported through these produce what we call safe apps so it will take some time until all d5 applications actually have one of these safe apps but in the meantime you still have this this way for interacting with the long tail of like the like there's so much coming up right now in d5 so uh we have this way to to do to do

everything we're still having yeah yeah exactly and it doesn't have to be within the ui of nurse's space that you can go out and do on on your own but have the wallet that's connected to everything is your wallet connect through safe it's dope it's really cool really cool and that makes yeah i mean won't even use any any other wallets and just use a metamask connected to the safe and then use wall connect yeah for sure and i mean what's also in my opinion quite cool with notice safe is that we provide quite some resources to like there's a lot of like concerns when you do defy and like uh you like new people

might have a lot of questions so we actually have this help center linked down there where we try to provide as much information as possible to to users uh starting with nsafe and doing dfi and if you still have any questions you can just click down here on this this bubble and you can actually get in touch with us right away and just chat with us and ask us your questions if you're unsure about something so that that definitely helps uh yeah uh making sure you all are active in the discord as well sorry you guys are active in the discord as well for sure we've got uh if you just type in chat.now syste.io

you will get directly to our discord but we're also pretty active well thanks lucas this is absolutely awesome i mean i i've already got it safe but i've i've learned more than enough i've got some changes to make something on my signing uh the way i set that up and the wallet connect was amazing for me and for what i've seen in them for those who have never seen safe and never use it i mean great great walkthrough and guys go get out there and create your your own safe you know with your family with your friends with yourself through different wallets try it out um you know it's super secure super solid and you can then engage with d5 maybe wait till gases is a little cheaper

i'm sure notice has some plans to get onto layer 2 etc eventually um but you know as of right now it looks great give it a give it a shot uh if you run a business or if you if if you just want to manage your funds in a more secure way um as always you know this is the there are smart contract risks that come with using these platforms uh unfortunately there is a support team with gnosis and with deep slate we're here to help but you know in in the event that anything happens we're not we are not responsible for your funds as nobody who's watching this is responsible for my safe except for me and the and the signers who are there so keep that in mind guys absolutely brilliant uh we love this product we use it we're excited and

thank you thank you so much for the walk through lucas and uh i'm really looking forward to getting this out yeah it was a pleasure and uh yeah stay safe out there uh dfa is a risky place so be careful that's right i'm gonna go play some golf get after it you try peace out