What is the Spool DAO Token (SPOOL)?
Spool DAO Token (SPOOL) is an intermediary DeFi protocol that provides capital aggregators, profit optimizers, and profit generators to bring out the best interests of the participants.
Spool is considered a rich choice of DeFi protocols. The platform is able to address the complexities of underlying risks and rewards that contribute to capital allocation inefficiencies.
Spool provides a mechanism by which users can minimize risks and maximize profits without having to have technical knowledge of the DeFi field. Spool is a place that connects capital aggregators, risk model providers, yield generators, and users to efficiently deploy capital most profitably.
What problem does Spool solve?
The world of DeFi is in constant flux. For example, yields will often change based on market conditions. Or, protocols can increase risk as they become more complex and less risky when tested.
In addition, most users do not have the time, ability, or capital to efficiently allocate (re-allocate) between different profit-making services.
This volatility spurred the birth of Spool. Spool solves these problems by allowing users to participate in a variety of profit-making instruments while maintaining proper diversification. Users simply deposit into an existing spool (or create their own) and enjoy automatically generated profits managed by Spool DAO.
The main components
- Spool Protocol: Includes all the Smart Contracts that make the protocol a usable DeFi product.
- Spool: Simply put, Spool is a new form of Vault.
- SPOOL Token: SPOOL is a token used for operations in the Spool protocol.
- Spool Labs: Spool Labs is a platform whose task is to enforce the decisions made by the Spool DAO.
Outstanding Features
- Spool is an unlimited DeFi toolbox that allows you to create custom strategies and seamlessly integrate them into DeFi applications via the Spool SDK.
- Fully Automatic: Spool’s intelligent algorithms automatically re-weight the portfolio according to the input parameters.
- Decentralized: 100% of operations on Spool are based on Smart Contracts. Assets will never be centrally custodial.
- Programmable Risk: Spool allows users to choose from established risk models or create their own risk model and present it to the DAO. If approved, Spool Creators may use your risk model.
- Earning by Holding SPOOL: SPOOL Stakers participate in governance and accumulate 100% of the revenue generated by the protocol. Of which, 80% of the revenue is paid directly to the SPOOL holders. The remaining 20% goes to the treasury controlled by the DAO.
- Monetize by being Spool Creators: Spool Creators can set performance fees (capped at 20% of profits) for themselves at the protocol level, which allows them to earn fees from participating users. in a transparent manner.
- End users can enter and withdraw from spools through a single access point on the Spool application.
DeFi services will be integrated into Spool
Lending and borrowing
Aave and Compound are good examples of DeFi protocols serving the borrowing and lending needs of users. For example, users can borrow USDC after depositing ETH at a fixed collateral rate. Participants who want to minimize risk can lend their stablecoins through Compound, Aave, or other lending protocols for interest.
Provide liquidity
Another way to make a profit is through trading fees accrued by AMMs such as Uniswap, Curve, Balancer, and Sushiswap. For example, if a user wants to exchange their DAI for USDC, they can do so through a DEX.
In order for the DEX AMM to facilitate this transaction, liquidity provided by third parties is required. AMMs deduct fees from each transaction passed to liquidity providers to incentivize them to lock in their funds.
Staking
This is also one of the simplest ways to make a profit. Staking describes the process of temporarily locking capital in a smart contract in return for receiving tokens as a reward. These tokens can be sold or accumulated.
Administration
Some protocols incentivize users to use their products with administrative rewards that are distributed over time. These rewards often serve as a method for liquidity to kick in and as a way to distribute governance to the actual users of the protocol.
This method of making profits often goes hand in hand with the ways of generating profits shared above. For example, users who provide liquidity on Curve will receive CRV governance tokens in addition to AMM transaction fees.
What is a Spool Token?
SPOOL is the governance token of the Spool ecosystem. This token is used for the following purposes:
- Vote on Spool Improvement Proposals: SPOOL owners can vote on proposals to improve or upgrade the spool ecosystem.
- Reward: SPOOL tokens can be issued to protocol users or value-generating advisors and approved by the DAO.
- Fee structure: 80% of the revenue generated by the protocol will be paid directly to SPOOL token holders. The remaining 20% is managed by the DAO, which is also managed by the SPOOL token holders.
- Proposed Risk Models: To ensure that risk models are approved and operate honestly, they must be vetted by the DAO, including SPOOL token holders.
Basic information about the SPOOL token
Token name: Spool DAO Token
Symbol: Spool
Blockchain: Ethereum
Standard: ERC-20
Type: Governance
0x40803cea2b2a32bda1be61d3604af6a814e70976
Total Spool Supply: 210,000,000
SPOOL Circulation Supply: 12,376,422
Where to store and buy SPOOL tokens?
SPOOL is an ERC-20 standard token. Therefore, you will have a lot of options to store this token, such as: Metamask, Trust Wallet, Coinbase Wallet, Coin98 Wallet, cold wallets (Ledger, Trezor),…
Alternatively, you can also store SPOOL tokens on supported exchanges.
Currently, you can buy SPOOL tokens on a number of exchanges, such as Uniswap, BKEX, etc.
Development team, investors, and partners
Development team
Spool was established as a DAO, with the founders representing a section of the blockchain community. Spool’s DAO is comprised of leaders and industry figures tasked with providing guidance and assistance during the project’s development stages.
In the future, the DAO will transition to a community-controlled structure as SPOOL governance tokens become widely distributed over time.
Investors
Spool has a partnership relationship with famous DeFi and blockchain platforms such as: Aave, Compound, SushiSwap, Uniswap, Binance Smart Chain, Ethereum, Polygon, Arbitrum, etc.
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