Tally Recipe for CoW Swaps

DAO trading presents a unique set of challenges when compared to retail trading. While small trades can easily access the liquidity necessary to execute quickly and efficiently, DAOs have to go through a complex proposal and voting process to simply initiate a trade. When actually placing the trade, DAOs also have to worry about optimizing liquidity sources, reducing price impact, avoiding MEV, fine-tuning slippage, and much more.

The DAO governance process ensures that all stakeholders get a say, but when it comes to executing trades, it forces DAOs into a difficult choice:

1. Announce and commit to the trade in advance to collect votes: This exposes the trade to significant MEV risk since the DAO makes the exact trade details known in advance… or,
2. Elect a treasury management team to execute the trade: This keeps trade details private, but bypasses the regular governance process and requires trusted third parties

This choice between losing money to MEV or having to delegate treasury decisions leads many DAOs to avoid making trades unless absolutely necessary. This causes more problems since regular trades are necessary for effective treasury diversification.

Today, CoW Swap and Tally, two of the most trusted names in the DAO space, are putting an end to this tradeoff once and for all.

We’re excited to announce the launch of the Tally Recipe for CoW Swaps: a combined governance & swap mechanism that eliminates the need for precise trade timing and gives DAOs the best of both worlds.

CoW Swap & Tally Present: The Tally Recipe for CoW Swaps

The Tally Recipe for CoW Swaps relies on Milkman, a CoW Grants-funded project developed by contributors from Yearn.fi, to enable easier DAO trading.

Milkman is a trading mechanism that uses a real-time price checker instead of a fixed slippage tolerance for executing trades. It has quickly become a critical tool for DAOs, as it encodes a guaranteed price on-chain at the time of the trade execution, rather than during the proposal process. The Milkman smart contract uses a bot that places trades on behalf of the DAO based on the parameters encoded in the DAO’s signed message.

Rather than including a fixed price and slippage tolerance in the governance proposal for an upcoming trade, DAOs can instead use a price checker (such as a Uniswap v3 price oracle) to complete the trade based on whatever the price is at the time of execution (within some slippage deviation).

Previously, DAOs had to run Milkman via scripts and code, but CoW Swap and Tally have created an easy-to-use operational UI interface for Milkman through the Tally Recipe for CoW Swaps.

How the Tally Recipe for CoW Swaps Works

The Tally Recipe for CoW Swaps makes DAO trading super simple.

When creating a governance proposal through Tally, DAO managers can add a “swap” action, in which they can specify:

• The assets that the proposal will trade
• The price checker that will be used to guarantee that the price at the moment of execution won’t deviate from the market price by more than the specified slippage tolerance
• The slippage amount that the DAO is willing to accept

Once the governance proposal for the DAO trade passes, the Milkman bot automatically picks up the transaction, checks the signature, and forwards the order to CoW Swap. Thanks to an EIP-1271 integration, CoW Swap can verify that the attached signature is valid and contains all the necessary trade parameters, even if it comes from a smart contract. The transaction then moves to the CoW orderbook and the solvers compete to find the best price and execution path for the order.

Tally & CoW Swap for Your DAO

DAOs have lots of options when it comes to governance and treasury management. Tally and CoW Swap are both committed to creating tools for enhancing the DAO trading experience.

Tally makes DAO governance management a breeze. DAOs can use Tally to:

• Create a home page for existing members and new visitors
• Create and manage DAO proposals
• Allow participants to vote on DAO proposals or delegate their voting power through a personal profile
• Allow delegates to advocate for receiving more votes by making a profile and showcasing their past voting activity

CoW Swap offers DAOs:

• The best prices from all available on-chain liquidity and through peer-to-peer swaps
• MEV protection through a network of solvers
• Forwarding of positive price surplus (your quoted price is the worst price you’ll pay)
• EIP-1271 smart orders that find the best price at the time of execution
• And much more

For DAOs large and small, the Tally Recipe for CoW Swaps takes treasury swaps to a whole new level. Enjoy trading with the peace of mind of a retail trader — regardless of how big your trade is.

To use the Tally Recipe for CoW Swaps for your DAO, sign up with Tally through their website.

Happy trading!