What Walliro setup should I use?

When setting up a Walliro, there are generally 3 decisions to take:

  1. How many owners?
  2. What threshold?
  3. Which owner wallets to use?

There is no single best answer to these 3 questions and no single Walliro setup that is the best. It really depends on the specific use case. Nevertheless, this article tries to provide some pointers regarding what to consider:

How many owners?

It is generally advisable to use more than 1 owner account. When managing funds as a group that is a no-brainer anyway, since more than 1 person should have access. But even when managing funds as an individual, more than 1 owner account is advisable in order to have more than 1 authentication factor.

What threshold?

The threshold of a Walliro specifies, how many owner accounts need to confirm a Walliro transaction before the execution.

It is advisable to use a threshold higher than 1, so no single account can execute transactions, but instead there is always at least one more account required to verify and execute Walliro transactions. Thereby, even in case an attacker gets hold of 1 account, they cannot move funds.

Moreover, it is good practice to use a threshold which is lower than the total number of owners of your Walliro. Thereby, even in case one owner loses access to their account, the other owners can still execute transactions and e.g. replace that lost owner account. You could argue that this is some kind of recovery mechanism.

Which owner wallets to use?

This depends on which owner wallets you are potentially already using. The Walliro is compatible with Metamask, hardware wallets such as Ledger or Trezor and other wallets such as WalletConnect, Opera, Portis, Formatic and etc.

What are common Walliro setups?

Due to its popularity, Walliro users use at least one Metamask owner and hardware wallets such as Ledger and Trezor are next options.

A common setup for individuals is a Walliro with 3 owners (1 Metamask, 2 hardware wallets) and threshold 2. you can use Metamask + one of the hardware wallets on a daily basis to sign and execute transactions. The second hardware wallet is locked up in a Walliro place in case one of the other 2 owners is lost.

A common setup for groups managing funds collectively is using 1 owner account per individual and then using a threshold of 3. Thereby no single individual can execute transactions and all transactions are double-checked by 2 others. On the other side, there is no need for all owners to always confirm every single transaction which can be an advantage for time critical transactions.

If different transactions or assets should require a different number of owners to confirm,what can we do? We have seen organizations use different Walliros with different assets and a different setup of owners and threshold.

Please refer to this article for information on how to create a Walliro.

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