diff --git a/contracts/test/utils/proxy/proxy-factory.ts b/contracts/test/utils/proxy/proxy-factory.ts
new file mode 100644
index 00000000..0a463612
--- /dev/null
+++ b/contracts/test/utils/proxy/proxy-factory.ts
@@ -0,0 +1,182 @@
+import {
+  ProxyFactory,
+  ProxyFactory__factory,
+  TestGovernanceERC20,
+  TestGovernanceERC20__factory,
+} from '../../../typechain';
+import {ProxyCreatedEvent} from '../../../typechain/src/utils/ProxyFactory';
+import {findEvent} from '../../../utils/helpers';
+import {
+  ERC1967_IMPLEMENTATION_SLOT,
+  OZ_INITIALIZED_SLOT_POSITION,
+  readStorage,
+} from '../../../utils/storage';
+import {SignerWithAddress} from '@nomiclabs/hardhat-ethers/signers';
+import {expect} from 'chai';
+import {ethers} from 'hardhat';
+
+const MOCK_ADDRESS = `0x${'0123456789'.repeat(4)}`;
+const DEFAULT_INITIALIZATION: [
+  string,
+  string,
+  string,
+  {receivers: string[]; amounts: number[]}
+] = [
+  MOCK_ADDRESS,
+  'GOV',
+  'GOV',
+  {
+    receivers: [],
+    amounts: [],
+  },
+];
+
+describe.only('ProxyFactory', function () {
+  let deployer: SignerWithAddress;
+  let proxyFactory: ProxyFactory;
+  let logic: TestGovernanceERC20;
+
+  before(async () => {
+    deployer = (await ethers.getSigners())[0];
+
+    logic = await new TestGovernanceERC20__factory(deployer).deploy(
+      ...DEFAULT_INITIALIZATION
+    );
+    proxyFactory = await new ProxyFactory__factory(deployer).deploy(
+      logic.address
+    );
+  });
+
+  describe('initialization', async () => {
+    it('points to the right logic contract', async () => {
+      expect(await proxyFactory.LOGIC()).to.equal(logic.address);
+    });
+  });
+
+  describe('deployUUPSProxy', async () => {
+    it('deploys the proxy unitialized if no data is provided', async () => {
+      const initData: any = [];
+
+      const tx = await proxyFactory.deployUUPSProxy(initData);
+      const event = await findEvent<ProxyCreatedEvent>(tx, 'ProxyCreated');
+      if (!event) {
+        throw new Error('Failed to get the event');
+      }
+
+      const tokenProxy = TestGovernanceERC20__factory.connect(
+        event.args.proxy,
+        deployer
+      );
+
+      // Check that the proxy points to the right logic contract.
+      expect(
+        await readStorage(tokenProxy.address, ERC1967_IMPLEMENTATION_SLOT, [
+          'address',
+        ])
+      ).to.equal(logic.address);
+
+      // Check that the proxy is not initialized.
+      expect(
+        await readStorage(tokenProxy.address, OZ_INITIALIZED_SLOT_POSITION, [
+          'uint8',
+        ])
+      ).to.equal(0);
+
+      // Check that the DAO address is not set.
+      expect(await tokenProxy.dao()).to.equal(ethers.constants.AddressZero);
+    });
+
+    it('deploys the proxy initialized if data is provided', async () => {
+      const initData =
+        TestGovernanceERC20__factory.createInterface().encodeFunctionData(
+          'initialize',
+          DEFAULT_INITIALIZATION
+        );
+
+      const tx = await proxyFactory.deployUUPSProxy(initData);
+      const event = await findEvent<ProxyCreatedEvent>(tx, 'ProxyCreated');
+      if (!event) {
+        throw new Error('Failed to get the event');
+      }
+
+      const tokenProxy = TestGovernanceERC20__factory.connect(
+        event.args.proxy,
+        deployer
+      );
+
+      // Check that the proxy points to the right logic contract.
+      expect(
+        await readStorage(tokenProxy.address, ERC1967_IMPLEMENTATION_SLOT, [
+          'address',
+        ])
+      ).to.equal(logic.address);
+
+      // Check that the proxy is initialized.
+      expect(
+        await readStorage(tokenProxy.address, OZ_INITIALIZED_SLOT_POSITION, [
+          'uint8',
+        ])
+      ).to.equal(1);
+
+      // Check that the DAO address is set.
+      expect(await tokenProxy.dao()).to.equal(MOCK_ADDRESS);
+    });
+  });
+
+  describe('deployMinimalProxy', async () => {
+    it('deploys the proxy unitialized if no data is provided', async () => {
+      const initData: any = [];
+
+      const tx = await proxyFactory.deployMinimalProxy(initData);
+
+      const event = await findEvent<ProxyCreatedEvent>(tx, 'ProxyCreated');
+      if (!event) {
+        throw new Error('Failed to get the event');
+      }
+
+      const tokenProxy = TestGovernanceERC20__factory.connect(
+        event.args.proxy,
+        deployer
+      );
+
+      // Check that the proxy is not initialized.
+      expect(
+        await readStorage(tokenProxy.address, OZ_INITIALIZED_SLOT_POSITION, [
+          'uint8',
+        ])
+      ).to.equal(0);
+
+      // Check that the DAO address is not set.
+      expect(await tokenProxy.dao()).to.equal(ethers.constants.AddressZero);
+    });
+
+    it('deploys the proxy initialized if data is provided', async () => {
+      const initData =
+        TestGovernanceERC20__factory.createInterface().encodeFunctionData(
+          'initialize',
+          DEFAULT_INITIALIZATION
+        );
+
+      const tx = await proxyFactory.deployMinimalProxy(initData);
+      const event = await findEvent<ProxyCreatedEvent>(tx, 'ProxyCreated');
+      if (!event) {
+        throw new Error('Failed to get the event');
+      }
+
+      const tokenProxy = TestGovernanceERC20__factory.connect(
+        event.args.proxy,
+        deployer
+      );
+
+      // Check that the proxy is initialized.
+      expect(
+        await readStorage(tokenProxy.address, OZ_INITIALIZED_SLOT_POSITION, [
+          'uint8',
+        ])
+      ).to.equal(1);
+
+      // Check that the DAO address is set.
+      expect(await tokenProxy.dao()).to.equal(MOCK_ADDRESS);
+    });
+  });
+});
diff --git a/contracts/utils/storage.ts b/contracts/utils/storage.ts
new file mode 100644
index 00000000..c82313ea
--- /dev/null
+++ b/contracts/utils/storage.ts
@@ -0,0 +1,18 @@
+import {defaultAbiCoder} from 'ethers/lib/utils';
+import {ethers} from 'hardhat';
+
+// See https://eips.ethereum.org/EIPS/eip-1967
+export const ERC1967_IMPLEMENTATION_SLOT =
+  '0x360894a13ba1a3210667c828492db98dca3e2076cc3735a920a3ca505d382bbc'; // bytes32(uint256(keccak256('eip1967.proxy.implementation')) - 1)
+
+export const OZ_INITIALIZED_SLOT_POSITION = 0;
+
+export async function readStorage(
+  contractAddress: string,
+  location: number | string,
+  types: string[]
+): Promise<string> {
+  return await ethers.provider
+    .getStorageAt(contractAddress, location)
+    .then(encoded => defaultAbiCoder.decode(types, encoded)[0]);
+}