Created to alleviate DeFi investment obstacles, Spool’s flagship service empowers individuals and institutions to easily build diversified, risk-adjusted yield portfolios that are auto-compounding and auto-rebalanced.
September 2022— Spool, the DAO creating a platform to build seamless DeFi products for investors of all backgrounds, launches its Smart Vault creation tool. Smart Vaults enable individuals and institutions to create customizable and diversified yield portfolios. Through a 5-step Smart Vault, or “Spool,” creation process, users can tailor all aspects of their portfolio, including assets, risk models, strategies, and allocations, to their goals.
Digital assets have the potential to change how people invest and build wealth. But the difficulty in getting accustomed to DeFi processes slows adoption. Cryptocurrency can be confusing to navigate on its own, and adding in the complexities of financial strategies and technology often stifles curiosity and exploration. Traditional institutions and individual investors interested in entering the DeFi space may find it grueling to build and manage comprehensive yield-generating portfolios.
Spool empowers investors of all sizes to easily participate in DeFi by simplifying previously inaccessible investment products. Through its non-custodial platform, users now have access to multiple yield generators while maintaining control of risk appetite and portfolio diversification. Built as a toolbox for institutions and individuals exploring decentralized finance, Spool eliminates the complexity that often characterizes DeFi product creation. The Spool Smart Vault creation pathway grants user agency over every key parameter of their DeFi portfolio, including:
- Spool Asset
Users can select from 3 stablecoins including USDC, DAI, and USDT to start building the portfolio.
- Risk Model
Spool’s native risk model analyzes key facets of yield generators including APY, TVL, time deployed, code audits, bug bounties, and depth of smart contracts to generate a comprehensive risk score. External risk model providers can create additional models implementing their own assessment criteria, which can be added to the platform once approved by the Spool DAO. This allows capital contributors to choose which model to utilize based on parameters that best suit their needs.
Creators can select and combine multiple strategies to build a diversified yield portfolio. Currently available strategies use key yield farming protocols and liquidity pools such as Aave, Curve, Harvest, Convex, and Yearn, among others.
- Risk Appetite
Capital contributors can set an adjustable risk appetite for their chosen investments using a sliding scale from 1 to 10. Each setting automatically updates fund allocations to each strategy and the projected APY which reflects the risk appetite.
- Performance Fee
Once all the yield generators are selected, Spool creators can set a performance fee to a maximum of 20 percent, generating additional profit from other investors choosing to deposit in the Smart Vault. Spool creators can then name their Spool and connect their crypto wallet, activating the Smart Vault.
The Spool creation feature opens the door for further developments. This includes a Software Development Kit (SDK) built for seamless white-labeled front-end integration by third-party developers, projects, and businesses to utilize Spool’s Smart Vault solution. Additional integrations to Spool’s native infrastructure include user-generated risk models and additional strategy protocols.
“We are incredibly proud to launch our flagship service to any investor or institution ready to make the leap into DeFi,” says Philipp Zimmerer, Core Contributor at Spool. “DeFi is the future of finance, but making its infrastructure accessible to everyone is vital to help grow to its full potential. Opening our creation toolkit puts Spool at the forefront of becoming the hub for decentralized financial products and services.”