Use Cases
While multisig solutions were initially used for securing treasury, they have the capacity to manage anything a regular private key can handle, offering many use cases for teams to enhance the security of their project assets.
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Protocols
For protocols, multisigs are essential for collective management of treasury and programs. Entrusting all program and funds control to a single individual/entity is highly risky and can easily lead to unwanted situations.
For NFT collections, multisigs are greatly beneficial to secure revenue from royalties, funds, or high-value NFTs held as treasury assets. The collection authority key should also be secured via multisig, since it can modify the metadata of the collection (e.g. supply, name).
NFT Collections
Validators
Validators should also consider using a multisig for their withdraw authority key. This protects their stakers from any unauthorized access to the authority for managing rewards and commission rate, while enabling shared management for validator organizations.
Multisigs can be beneficial for VCs who require a more advanced self-custody solution than cold wallets. They can use a multisig to receive tokens from vesting streams of their investments on Solana and to securely custody tokens from the ecosystem.
Venture Funds
Emerging Projects
Emerging projects from the start should consider securing their grant/strategic round in a multisig along with their program authority key to ensure that they can safely develop their idea. If later a token is created, its mint/burn authority should also be managed via multisig.
How secure is Squads for asset custody
Scenarios
The platform becomes unavailable
A member of your multisig tries to trigger a malicious transaction
One member of your multisig loses their key/is compromised
The Squads Labs team wants to block one of your transactions
The Squads Labs team wants to upgrade the program
A malicious actor tries to compromise your Squads multisig