Sukanshi | Coinshift
Sukanshi | Coinshift
Nov 24, 2022 10:07:27 PM

How Biconomy is Using Coinshift to Manage Treasury Payouts

Current Status

  • $3M USD in Payouts
  • $8M in total assets

Summary of Key Benefits

  • End-to-End Encryption for all payment transactions ensures sensitive payment details remain private.
  • Adding metadata (notes) to payment transactions reduces the time for accounting reconciliation.
  • Multi-sig signers no longer need to pay for gas from their accounts, as Biconomy’s own Mexa solution integrated into Coinshift can manage gas payments, greatly simplifying company accounting.

Biconomy Challenges

As Biconomy’s business grew, the volume and complexity of on-chain crypto payments increased. Biconomy had three specific challenges:

  1. How to keep payment information private, even when paying on-chain?
  2. How to better manage transactions on-chain to make accounting easier?
  3. How to avoid having multi-sig signers pay gas fees from their personal Ethereum wallets, complicating company accounting?

And in addition to the accounting issues, Biconomy did not want to require individual signers to maintain ETH balances to pay gas fees for company transactions. Finally, whatever solution was proposed, it was critical it was built on top of Gnosis Safe. Gnosis Safe is a key component of Biconomy’s digital asset management strategy and should remain the foundation of any Treasury Management solution.

The Solution

Coinshift’s end-to-end encryption option ensured Biconomy payment details would remain private. Coinshift cannot generate encryption keys within the solution. Only account owners can do this, guaranteeing complete privacy.

Coinshift users can also include metadata with payment transactions. This allows Biconomy to add additional information during payouts. This data remains with the transaction and is included within the .csv file. This has made accounting reconciliation much easier, saving time.

However, the final challenge of not forcing signers to pay with gas from their wallets would require further development. Fortunately, Biconomy already had a solution.

Biconomy SDK (Mexa)

Early in 2019, Biconomy built a highly scalable relayer engine infrastructure that enabled meta transactions, including gasless transactions, within DApps. Mexa could be implemented with minimal changes to existing smart contracts, typically just a few additional lines of code.

By incorporating Mexa, Coinshift could now ensure Biconomy’s multi-sig signers no longer paid gas fees. Biconomy allocates company funds to cover all gas transactions, which Coinshift then makes. Gasless payments became a reality for Biconomy signers. No longer would the company need to send ETH to each signer to enable Biconomy payments. And with dedicated gas accounts within Biconomy, accounting was further simplified.

Coinshift and Biconomy

With the addition of Mexa into Coinshift’s Treasury Management solution, all Coinshift users — not just Biconomy users — can approve and sign transactions from their wallets without having to spend their ETH for gas.

About Coinshift

Coinshift aims to build the most sophisticated crypto treasury management platform for companies & DAOs. We aim to provide complete data transparency to DAOs by building a shared data layer on top of IPFS & Filecoin.

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