Key takeaways
Spending Limits are now available to all Squads users.
They enable flexibility for low-value transactions that don’t require multisig approval.
Use Spending Limits to simplify transactions — all while robust security standards are maintained.
As a multisig solution, Squads requires multiple signatures from different keys to approve transactions. The most commonly used multisig-setup includes two Ledgers and a light account, such as Phantom, with a 2/3 approval threshold. Although this is the standard for most Squads users, it’s not convenient — particularly when you don't have access to your Ledger or you’re on the go.
This is where Spending Limits come in.
With Spending Limits, you can pre-approve low-value transactions that don’t require multisig approval. Think of Spending Limits as a debit card with pre-defined spending rules for daily and routine transactions.
When creating a Spending Limit, you can specify the token, token amount, time frame (daily/weekly/monthly), and user profile that applies.
Let’s use the example of the Squad with three keys: Two Ledgers and a Phantom wallet, with a 2/3 approval threshold. In this setup, you can allocate a weekly marketing budget of 1,000 USDC to your Phantom wallet via Spending Limits. Once set up, weekly transactions up to 1,000 USDC from a marketing team member can exclusively be signed by the Phantom wallet and don’t require multisig approval via a Ledger any longer. This gives you more convenience — all while robust security standards are maintained.
Start using Spending Limits today; you’ll find them on the Settings page of your Squads app.
About Squads Labs
Squads Labs is a core contributor to Squads Protocol, the leading multisig infrastructure on Solana. In addition to helping maintain the protocol, Squads Labs makes the Squads platform, an institutional-grade multisig platform for Solana-based teams. The Squads platform helps web3-native teams manage and secure digital assets on-chain. To learn more about Squads Labs, please visit sqds.io.
About Squads Protocol
Squads is a multisig protocol that helps web3-native teams manage and secure digital assets on-chain. Squads Protocol v3 is the first formally verified program on Solana. Squads Protocol v4 introduces time locks, spending limits, roles, sub-accounts, fee relayers, multiple-party payments, support for SquadsX and more. Squads v4 has already been audited by Neodyme, OtterSec, and Trail of Bits. It is currently undergoing two formal verifications, one by OtterSec and the other by Certora. To learn more about Squads Protocol, please visit squads.so/protocol
