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Spool DAO, Staking Rewards launch the definitive liquid staking solution on Ethereum




Spool DAO, or Spool, the DeFi platform allowing institutions and users to build customizable, risk-managed investment crypto products, joins forces with Staking Rewards, the world’s central information hub and leading data aggregator for the crypto staking industry. The centerpiece of the partnership includes the launch of srETH, an all-weather staking index on Ethereum, opening the door to retail investors to access DeFi in the same way they would utilize a traditional exchange-traded fund (ETF).

Decentralized finance unlocks boundless opportunities to build wealth as an alternative to traditional financial practices. But for the industry to reach a global market size of $232 billion by 2030, as projected in a recent study by Zion Market Research, builders in the sector must address obstacles to its progress. The DeFi landscape is complex to navigate and yields can be unpredictable—even for crypto natives and traditional finance investors—and few options currently exist to mitigate that.

The Spool and Staking Rewards partnership creates an all-weather liquid staking index that minimizes volatility and generates a more predictable yield for long-term Ethereum investments. The index fund leverages strategies from premier ETH staking providers selected and vetted by both Staking Rewards and Spool, such as Lido and Rocket Pool.

srETH then allocates a small percentage of funds to a diverse selection of robust and track-proven DeFi strategies. These strategies have demonstrated their resilience across various economic environments and are proactively kept in check by the Staking Rewards team. This meticulously managed approach is made possible through the implementation of Spool’s Smart Vault technology, ensuring the portfolio remains well-positioned in changing reward market conditions.

Spool’s DeFi infrastructure powers all of the key features within srETH, including:

  • Automated portfolio optimization: srETH dynamically allocates funds across leading DeFi protocols, such as Lido, Rocket Pool, Frax, and others, ensuring diversity and minimizing volatility for investors.
  • Robust rewards: The index uses risk-optimized yield strategies that are specifically designed to produce reliable yield for Ethereum investors over the long-term.
  • Top-level staking and DeFi: srETH provides the foremost vanilla staking rewards on ETH, backed by additional yield from Staking Rewards’ trusted DeFi partners.
  • Security and transparency: srETH utilizes the SRM (Spool Risk Model) to prioritize user-fund security, conducting regular audits and adhering to best practices to ensure safety. Additionally, users can access transparent reporting on performance metrics at any time.
  • Guidance from staking pioneers: srETH is proactively kept in check by Staking Rewards’ team of unbiased researchers committed to clients’ staking success.
  • Expansion and future development: The index is designed to be adaptable and expandable, allowing for integration with additional protocols and strategies in the future.

srETH addresses common investor vital pain points identified by Staking Rewards, which include the ability to produce a more reliable yield on ETH over the long-term, complicated manual portfolio management, and DeFi’s steep technical learning curve. As the first collaboration of its kind, srETH sets the stage for additional institutional-level partnerships with Spool to consolidate the complexities in DeFi investment.

Early access to srETH will be made available through a now-open waitlist. Both Spool’s and Staking Rewards’s communities can sign up to receive updates on the index fund in addition to other upcoming projects.

“We’re immensely proud to have Staking Rewards be our first partner in creating a landmark DeFi investment product that anyone can use,” says Simon Schaber, Chief Business Development Officer of Spool DAO. “srETH is a complete paradigm shift when it comes to how people can enter decentralized investing and aligns with our goal to create an accessible DeFi infrastructure that benefits both institutions and retail investors equally.”

“Partnering with Spool marks our expansion into offering an all-weather staking solution that builds on the foundation of trust and accessibility we have established within the wider staking community,” says Mirko Schmiedl, CEO & Co-Founder of Staking Rewards. “Staking should produce more reliable returns for everyone over the long-term, regardless of how volatile reward markets can be. We’re proud to partner with a platform that enables that to happen in a secure and customizable way.”


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Financial industry bodies defend permissionless blockchains against Basel Committee’s classification




Five financial industry bodies have pushed back against the treatment of permissionless blockchains by a global banking supervision authority.

In December, the Basel Committee on Banking Supervision (BCBS) published a report on proposed amendments to bank capital requirements for digital assets, stablecoins, and tokenized assets.

The report classified all permissionless blockchains as high-risk, claiming that some risks could not be mitigated through existing solutions. BCBS was particularly concerned about banks’ lack of control over third parties who conduct most operations on these blockchains. It also warned about their privacy, finality, liquidity, and political, legal, and policy risks.

In response, five global financial industry regulators have defended permissionless blockchains. In a joint response, they stated that the industry “has all necessary expertise and robust compliance frameworks to fully identify, manage and mitigate these risks.”

The five are the International Swaps and Derivatives Association, the Global Financial Markets Association, the Institute of International Finance, the Futures Industry Association, and the Financial Services Forum.

Blockchain’s application in the financial industry is evolving, and regulators must not disincentivize banks from exploring the technology, the regulators stated. By putting up unnecessary hurdles, the BCBS would only push these institutions to the non-regulated shadow banking space, which would be riskier for them.

The regulators further noted that dozens of global banks have conducted successful pilots using permissionless blockchains. These pilots have shed more light on the technology’s application and allowed them to understand and control emergent risks.

The BCBS approach is unfair to blockchain and veers away from the regulator’s long-held “same asset, same risk” approach, they added.

“While we acknowledge that risk mitigation techniques are evolving for permissionless crypto assets…we are confident that solutions already exist in respect of specific use cases,” the five stated.

They believe deciding whether to build on permissionless blockchains should be left to the banks.

The financial sector has been a leader in blockchain adoption, with some, like JPMorgan (NASDAQ: JPM), developing their own permissioned networks, albeit unsuccessfully. However, most have relied on existing solutions to build applications spanning settlement, bond issuance, tokenization, etc.


The post Financial industry bodies defend permissionless blockchains against Basel Committee’s classification appeared first on HIPTHER Alerts.

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