Spool DAO updates DeFi platform

Spool DAO or Spool, the platform that enables institutions and users to develop customizable risk-driven DeFi products, launches its V2 upgrade.

Spool’s new platform expands its original DeFi infrastructure and tools with improved decentralized access and new features. Institutions of all sizes can now take advantage of the numerous new features and interface updates to create, manage and explore DeFi products with unparalleled flexibility, risk reduction and security.

Despite crypto’s turbulent year, DeFi’s blue-chip protocols managed to largely withstand the industry-wide chaos. But that doesn’t mean the DeFi landscape hasn’t changed at all. Threatening regulatory moves, like the new bipartisan bill before the US Senate, aim to police DeFi apps in a similar way to banks, setting the stage to meet increasing interest from legacy financial institutions. Banks and institutions clearly see potential in the financial possibilities of crypto and DeFi, but they lack the right tools to access them easily, compliantly and on their terms.

To meet this institutional need, Spool now offers a completely rebuilt platform for risk-managed and automated DeFi returns. V2 was designed from the ground up to be faster, more efficient, more composable and easier to use than its predecessor. It represents a leap for Spool and institutions expanding their DeFi presence. The upgrade expands Spool’s core offering and introduces several key features to maximize the effectiveness of institutional DeFi investments. These features and improvements include:

• Multi-Asset Smart Vaults: Institutions creating smart vaults can now build them to include a range of return strategies using multiple assets. Multi-asset smart vaults extend functionality in addition to the classic spool auto-swap and auto-rebalance capabilities. Investors can simply create a Smart Vault or select an existing one that suits their investment preferences and send the assets available to them. The assets are then automatically exchanged and implemented in audited and field-tested smart contracts to achieve the best possible returns while allowing funds to be withdrawn at any time.
• Smart Vault Guards: Institutions building Smart Vaults can now determine which users can make deposits or withdrawals from the vault based on specific criteria, similar to traditional mutual funds. This helps institutions tailor DeFi offerings not only to regulatory compliance but also to their specific customer needs. For example, institutions can create KYC and AML compliant smart vaults and allow access only to verified investors via whitelisted wallets. Other parameters include NFT or token gating (where a user must own a certain amount of NFT or token to access the vault) and time locks.
• Actions: Spool builders can now implement customizable actions tied to user activity, such as: B. entering or exiting a Smart Vault that is configured during its creation. Actions help support institutions by creating a framework familiar to traditional finance that includes features such as deposit or withdrawal fees, deposit insurance fees, and automated asset exchanges that help streamline the once manual process for yield farming.
• Support for Liquid Staking Derivatives (LSDs): LSDs are tokens issued in return for staking cryptocurrencies by a staking provider. This is convenient for networks like Ethereum, where validators must own at least 32 ETH to access staking and validator permissions. LSDs also allow users to withdraw staked ETH, which validators cannot do. As strategies using LSDs become more popular and common, the addition of support in V2 allows for greater convenience.
• Advanced Automation: One of DeFi’s biggest obstacles lies in manual asset management within yield farms. V2 improves Spool’s original automation features while maintaining decentralization and self-governance. Once assets are in a Smart Vault portfolio, V2 automatically rebalances them between different strategies configured in the Vault. Spool now also offers automatic collateral conversion, meaning customers who invest in a Smart Vault can use any underlying asset available to them. Spool automatically converts the asset before investing, providing more convenience and choice.
• Deposit NFTs (dNFTs): D-NFTs provide users with an immutable NFT receipt of their Smart Vault deposits, enabling withdrawal of funds. ERC-20 Smart Vault Tokens (SVTs) are created by burning D-NFTs and act as yield-producing stablecoins that can be easily transferred or traded on a secondary market, creating a new liquid financial instrument.
• Watch Spool’s video here: https://drive.google.com/file/d/150B6sSdX9gMAjdig-5675nLfftciWidJ/view

You can find a more detailed video with a function overview here: https://drive.google.com/file/d/1uIr_AJ_iHKErkHR5lFaUWk39A4-NUtEo/view?usp=drive_link

These new features include Spool V2’s completely redesigned user interface, allowing institutions and asset managers to get a bird’s eye view of their Smart Vault portfolio. The platform promotes accessibility while providing the comprehensive tools and oversight that institutions need. This includes tools to easily white-label Smart Vaults for customer access with their own branding and unique insights into Smart Vault performance based on customizable KPIs.

By enabling code-free creation of financial services and products powered by verified financial primitives, institutions that do not have DeFi-specific teams can now easily access DeFi. The upgrade’s capabilities set the stage for large-scale institutional partnerships in the pipeline for Spool, following a steady stream of integrations and collaborations leading up to its launch.

“We are incredibly proud to launch Spool V2 after our team spent countless months developing, testing and listening to the feedback and needs of our institutional partners,” says Philipp Zimmerer, Head of Token Strategy at Spool. “This is a pivotal moment in the crypto industry in a year that has been about rebuilding the industry responsibly and charting a new path for DeFi. Improving access, flexibility and security will not only gain further institutional support, but also set a new standard for what DeFi can enable every investor.”

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