Spool launches its Smart Vault tool to radically simplify the creation of risk-managed return portfolios
Spool, the DAO creating a platform to build seamless DeFi products for investors of all backgrounds, launches their Smart Vault creation tool. Smart Vaults enable individuals and institutions to create customizable and diversified portfolios of returns. Through a 5-step Smart Vault or “spool” creation process, users can customize all aspects of their portfolio, including assets, risk models, strategies and allocations, to meet their goals.
Digital assets have the potential to transform the way people invest and build wealth. But the difficulty of getting used to DeFi processes is slowing down adoption. Navigating cryptocurrency can be confusing, and adding in the complexities of financial strategies and technology often stifles curiosity and exploration. Traditional institutions and individual investors interested in getting into the DeFi space may find it exhausting to build and manage large income-generating portfolios.
Spool allows investors of all sizes to easily get involved in DeFi by simplifying previously inaccessible investment products. Through the non-custodial platform, users now have access to multiple income generators while maintaining control over risk appetite and portfolio diversification. Designed as a toolbox for institutions and individuals engaged in decentralized finance, Spool eliminates the complexity that often characterizes DeFi product creation. The Spool Smart Vault creation path grants the user freedom of choice over every key parameter of their DeFi portfolio, including:
Users can choose from 3 stablecoins including USDC, DAI and USDT to start building the portfolio.
Spool’s native risk model analyzes key facets of revenue generators, including APY, TVL, uptime, code audits, bug bounties, and smart contract depth to generate a comprehensive risk score. External risk model providers can create additional models implementing their own scoring criteria, which can be added to the platform once approved by the Spool DAO. This allows funders to decide which model to use based on parameters that best suit their needs.
Builders can select and combine multiple strategies to build a diversified return portfolio. Strategies currently available use major yield farming protocols and liquidity pools such as Aave, Curve, Harvest, Convex, and Yearn, among others.
Investors can set an adjustable risk appetite for their chosen investments using a sliding scale from 1 to 10. Each setting automatically updates the fund allocations for each strategy and the projected APY, which reflects risk appetite.
Once all income generators are selected, spool creators can set a performance fee up to a maximum of 20 percent, thereby generating additional profit from other investors who choose to fund the Smart Vault. Spool creators can then name their spool and connect their crypto wallet, which activates the Smart Vault.
The spool creation function opens the door for further developments. This includes a Software Development Kit (SDK) designed for seamless white-label front-end integration by third-party developers, projects and companies to leverage Spool’s Smart Vault solution. Additional integrations into Spool’s native infrastructure include user-generated risk models and additional strategy protocols.
“We are incredibly proud to introduce our flagship service to any investor or institution ready to take the plunge into DeFi,” says Philipp Zimmerer, Core Contributor at Spool. “DeFi is the future of finance, but making its infrastructure accessible to all is crucial to help realize its full potential. By opening up our build toolkit, Spool is at the forefront of becoming the hub for decentralized finance products and services.”
Spool is a DAO building a comprehensive and simplified infrastructure for DeFi investment products. Spool unlocks the possibilities of decentralized investing to a global audience through a single interface that prioritizes accessibility and customization. By providing a world-class toolbox for institutions and investors, Spool opens the door to diversified, risk-adjusted DeFi returns.
Photo by Luis Villasmil on Unsplash
Read other stories: The Token RegRadar Interview Series – Episode 2
ETC Group expands European leadership team after expansive growth
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers