Squads — Deep Dive
When I saw a bounty announced by SuperTeam on Squad project deep dive I mostly knew a thing or two about some work going on Web3 infrastructure and Solana chain and I got to know about some people working to build protocols and programmes to make Solana infrastructure easier to use for DAOs or individual so that it can scale with efficiency.
But when I did a background check about Squads project that’s when I got to know in-depth what are its mainstream use cases and it helped me to understand, at what nascent stage the Solana infrastructure for groups working to build protocols and programmes is and how much efforts people are putting in to make this technology work and scale it for wider use.
So until Feb 2022 if you are working on a Web3 project on the Solana network you can either work as an individual or in a group of like-minded people (called or known as “DAOs”). But with Squads, you can work in teams (or so to say “Squads”) working on the specific functions of the project and acting as a department just like we see an account, marketing, sales, operation and tech departments in any Web2 based organization or corporates.
Squads as a useful tool for DAO’s existing framework
Note: if you want to understand how DAOs work then please check the following link for details https://superteam.substack.com/p/solana-dao-tooling?s=r (DAOs explained in simple words by Aditya a Superteam member)
DAOs at a basic level is like a community equivalent of the corporate organization working employing multiple people to work on a Web3 project.
But the key differences between a DAO and a typical corporate organization are as follows
- People can join DAOs to contribute to a Web3 project according to their will and can work part-time/full time as per their availability unlike a corporate employee who is bound to work for full time and where most of the employees work just to earn a living, on the contrary DAOs have like-minded people working on a project as per their will and who share the same vision for the project.
2. Individuals working in DAO always have a sense of inclusion in decision making for the growth of a project unlike corporate employees working in silos just to get their job done and without a proper say in every decision-making activity for the company’s growth.
But at the current stage, if you manage a DAO of a few hundred individuals working together it’s ok for every token holder in the DAO to vote on any proposal related to treasury expenses or any changes to be made in the project, But think of a scenario where are you working in a DAO which consists hundreds of thousands of individual contributors, what happens then?
On a large scale, DAOs token-based voting for every small proposal like approval of your daily expense fund or for that matter your salary can way too much time because then all these hundreds of thousands of token holders in that DAO have to vote each and every proposal which can lead to following issues.
- Slow decision making
- If a large group of the token holders in the DAO approves a proposal even though you have some legitimate concerns about the proposal and don’t want to approve it you say doesn’t matter.
Sqauds solves all the aforementioned challenges through the creation of a team working as a specific department of the DAO or as a Sub DAO and by allowing on-chain coded membership which enables a structure where the marketing Squad of a DAO only need to vote for all the marketing proposal and a payroll squad only needs to vote for all the salaries and DAO expenses instead of the necessity of every DAO member to participate in voting.
So what is Squads?
Squads is a Web3 based DAO tool helping individuals and DAOs to work in teams and making necessary infrastructure available to build these teams (“Squads”), didn’t understand?
So let’s say today if you want to move from point A to point B you can’t do it just in your thoughts you need physical infrastructure in place to facilitate your movement from point A to point B such as roads, mode of transport (Uber/Car/Bike), a station to aboard the transportation mode etc.
Just like this Squads is the first DAO tool enabling Web3 natives to work in teams and helps them with the necessary infrastructure to do so. Future holds Squads as a crucial Web3 DAO tool such that without creating a Squad your journey doesn’t begin on Web3.
Squads boost the efficiency of the current working infrastructure on Web3 as follows
- Through Squads, one can assign a particular role to each and every member within DAO and this role is hardcoded on-chain so that no one can change it until and unless the one holding a post or role in the group has been voted out by the rest of the team.
- Through Squads, a group of people can set up a multi-signature wallet (called “Vaults/mutli-sigs”) in this type of crypto wallet multiple people can park their money trustless joint venture like staking or other crypto investments cause each and every transaction from these Vaults required proposal to be passed by all the stakeholder via on-chain tokenless voting.
- Squads provide a feature of on-chain voting instead of off-chain voting via google sheets or any other method by solving record keeping and maintaining transparency)
Use cases of Squads
As of there two major types of use cases of Squads
- On-chain coded membership role assigned to each member of the Squad
- Voting can be done on-chain in a weighted manner so that majority favours do not overshadow legit dissent for the proposal.
- Voting is tokenless
- Multisigs can be used as a treasury for a DAO to keep entire DAOs crypto pooled in a single vault and for all types of transactions (such as salaries, miscellaneous payments and others) a proposal needs to be passed by voters.
- Multisigs can be used for joint investment ventures by several strangers pooling money together for a venture.
- At present, one can buy/sell NFTs and do single swaps/conversion of one crypto to another one (i.e.for example changing Solana to USDT or vice versa) via multisigs
Overall onboarding process on Squads is quite simple and hassle-free with just a few clicks you can set up your own squad by adding all of your team members through their Twitter ids.
Access website — https://squads.so/
Click on the ”Launch App” button, click on connect but to connect your Solana wallet (such as Phantom) with Squads.
Once you log in you can choose what do you want to do? set up a multisig or a team.
Note: You need 0.008SOL to create a multisig or a team on Squads as gas fee
Step_2 Setting up a multisig
Select Squad Type as mutisig and click on next, now you can add multisig owner who has access to vote on proposals
You can add or remove multisig owner after initial deployment of your multisigs as well
Setp_3 Setting up a Team
To set up a Team on Squads first you need to select Squad Type as Team and then you can add members to your team and setup how many tokens are required for each member to vote for a proposal and what’s their weightage in the overall voting process.
You can add or remove members from Team as well just like mutisigs
I didn’t have SOL in my phantom wallet hence can’t execute all steps like creating a proposal and buying NFT etc. but even buying/selling NFTs, executing proposals but these features can be accessed once you are done with creating multisig or team with a few clicks.
Squads Community and Discord Channel
After using the discord channel for a few days I genuinely liked the vibe of the community how Sean | Squads and Dimitry | Squads are available on the discord channel and other team members are focused to make this tool make a one-stop solution to facilitate the requirement of the current Solana ecosystem DAO infrastructure.
As of now, the team is focused on the development of a multisig use case while working simultaneously working to launch the other features covered in the next segment of this doc.
Dimitry is the community manager of Squads community so if you have any queries regarding the project go and put up your queries in #general channel of the discord and you’ll get a prompt reply.
Existing and upcoming features of Squads tool
- Raydium: Raydium’s SDK incorporated with Squads allows you to swap your crypto in your multisig from one crypto to another crypto in single pairs (SOL <> USDT) multi-pair swaps(SOL <> USDT <> SHDW) are yet to be launched. Every swap initiates a proposal and once the proposal is approved only then the swap can be executed.
- Cardinal: Cardinal protocol allows you to connect your Twitter ID with Squads interface and your name can reflect on the squads interface directly.
- Secure vault for storage of digital assets and including NFT support.
- On-chain voting
- Send and receive assets and NFTs in your mutisigs
Upcoming feature launch
- Built-in chat integration for Teams setup
- Investment features such as staking treasury available in multisigs and other structured products
- Features that help LLC incorporation and setting up contracts to be signed by contributors working in Squad for startups working on Solana Ecosystem.
- Buy and sell listed NFTs directly from multisig UI.
In the current Web2 ecosystem if you are setting a start-up then you might want to connect with a consultant or Legal counsel and CA for your company’s incorporation, GST no. and employment agreement to be made as paperwork formalities and create separate offices for various department of your organization.
In Web3 Squads is the ultimate one-stop solution and the only DAO tool available in the Solana ecosystem as of now acting as a crucial infrastructure provider for efficient operations of your DAO.
References & Relevant Links:
- Squads Medium — https://squads.medium.com/
- Twitter Handle — https://twitter.com/squadsprotocol
- What are DAOs and how they function: https://simplifyd.substack.com/p/web3-communities-and-the-grape-protocol?s=r
- What is DAO Tooling and other tools available to build a DAO: https://superteam.substack.com/p/solana-dao-tooling?s=r