Blockchain
Spool brings institutions a customizable, risk-adjusted gateway to DeFi as demand rises
Spool, the DAO platform allowing users to build seamless DeFi products, brings customizable, risk-managed yield portfolios to institutions of any size. Institutional investors can now build tailor-made “Smart Vaults” Spool’s yield solution built for considered and diversified DeFi exploration.
With the collapse of FTX—the former symbol of legitimacy and forward-thinking in crypto—many blockchain enthusiasts fear institutions will step away from digital assets. But 62% of institutional crypto investors raised their allocations in the past 12 months, according to a recent Coinbase report. What’s more, 58% of investors plan to raise their allocations more over the next three years, suggesting institutions are taking a long-term view of the asset class even though prices remain low. Institutions will, however, step away from CeFi, which has proven it can’t deliver on the promise of digital assets in recent weeks. That will inevitably translate into a surge in demand for DeFi products.
Spool is positioning itself as the go-to platform for institutions looking to build customizable, risk-managed yield portfolios. Through its non-custodial platform, institutions can now access multiple attractive yield generators while maintaining control of risk appetite and portfolio diversification. Spool’s 5-step Smart Vault creation toolbox eliminates the complexity and obfuscated risk that often characterizes DeFi product creation. By walking through each step of portfolio creation, institutional investors can ascertain each facet of the Smart Vault to reflect their desired fund allocations and risk appetite.
Spool’s comprehensive framework empowers institutions to confidently enter DeFi by mirroring existing financial language and portfolio management options. Connecting the terminology and operational language of traditional finance to DeFi helps institutions and their clients better understand their DeFi investing strategies.
Spool’s on-chain DAO governance operates as a quality control mechanism that all yield protocols and risk models must pass before being integrated into its platform. Institutions creating Smart Vaults can then leverage their brand recognition and client trust by white-labeled yield portfolios through a software development kit. Customers of the institution can join a branded Smart Vault and attain all the benefits of the institution’s carefully crafted portfolio, while a customizable Performance Fee can generate additional income for the portfolio’s creator.
Backed by a no-code interface on top of which institutions can build, Spool removes the costly overhead and manpower required for institutions to fully harness DeFi’s flexibility and investment potential. By auto-rebalancing and auto-compounding portfolios, institutions can enter DeFi without hiring special development and management teams. Spool’s regulatory and technical compliance also operates at an institutional-grade level to assure investors and managers remain in line with all current and future laws regarding crypto.
“Institutions across traditional finance and crypto are still just scratching the surface of what is possible with DeFi and there is still a very clear interest to enter the field,” says Simon Schaber, Chief Business Development Officer of Spool. “We are proud that our platform is at the forefront of bridging the gap for those firms that are ready to go head-on into adopting digital assets while still operating in a familiar and secure framework to build the best DeFi products possible.”
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