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Spool is a composable and permissionless DeFi liquidity router that connects Capital Aggregators with DeFi Yield Generators to dynamically allocate funds and ensure optimized yields.
Decentralized autonomous company Spool has announced its plans to launch the Liquidity Bootstrapper pool. The company comprising over 40 leading DeFi investment firms has announced that its Fair Launch will take place on December 13 at 17:00 UTC.
Per the announcement, the Fair Launch event for Spool will run on a Balancer Liquidity Bootstrapping Pool (LBP) via the Copper platform. It will consist of a two-token pool with SPOOL and DAI.
The LBP will start at a pool weight of SPOOL: DAI equal to 96:4 and will shift downwards to SPOOL: DAI weight of 50:50 over the 3 days. This will create downward pressure on the price. About 5% of the total SPOOL token supply will be distributed. The starting price of the token is 2.44 DAI.
Spool is a composable and permissionless DeFi liquidity router that connects Capital Aggregators with DeFi Yield Generators to dynamically, automatically, and efficiently allocate funds and ensure optimized yields, for custom strategies, managed by DAO-curated Risk Models.
The protocol is essentially a middleware initiative. The solution allows custom, varied, and risk-insured DeFi portfolios to be created and tailored to the user’s preferences. It acts as the foundational block for a growing DeFi ecosystem meaning it can be combined with other solutions to create better user-focused products and act as the foundation to a growing DeFi ecosystem.
According to Leslie Tam of Genesis Block Ventures, “Spool’s middleware solution allows us to create custom strategies that can be integrated in DeFi applications via SDKs.”
Tam affirms that Spool is a needed toolset which companies with an interest in DeFi need. He also expressed delight and optimism that the Geb will use Spool to create, ‘superior risk-mitigated outcomes for its fund strategies.’
With Spool, users can access yield optimization easily. Thus, Spool presents a unique solution to the Ethereum ecosystem where users can combine farming in multiple DeFi strategies via a single deposit. The funds in these farms are dynamically rebalanced to optimize for yield & risk.
With Spool, entry into DeFi is cheaper when using a buffer system and transaction batching. This allows users to enjoy diversified DeFi portfolios at a similar cost to a single Uniswap transaction.
“Ultimately, Spool is an innovative idea being delivered by a sophisticated team of builders. It represents a productive solution for a foundational problem in DeFi and offers a user-oriented product path guided by an excellent governance model,” said Bowen Zhao of JRR Group.