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Project Summary: The Spool Protocol serves as DeFi middleware that allows users to participate in a subset of yield generating protocols in a risk diversified, automatically managed, and efficient fashion.
Founded: April 2020
Team Size: 14
Stage: Growth. Live on mainnet as of April 2022.
Whitepaper - https://docs.spool.fi/
Function: $SPOOL serves as a DAO governance and incentive token
CMC listing: https://coinmarketcap.com/currencies/spool-dao/
Circulating Supply: 25,303,557
Maximum Supply: 210,000,000.00
Market Cap: $14,524,532
Table of Contents
Table of Contents
Token & Tokenomics
Founders / Key Team Members
Fundraising / Financial
Traction / Community / Media
Spool is a DeFi middleware platform that offers composability and permissionless access to diversified yield generation strategies. It facilitates the connection between capital aggregators and DeFi yield generators, allowing for efficient and dynamic allocation of funds. With Spool, custom strategies managed by DAO-curated risk models can be optimized for yields, automatically and seamlessly.
In its most basic form, the Spool Ecosystem allows end-users to enjoy DeFi yields on their deposits while minimizing the risk of failure through diversification. Additional benefits are higher yield through cost-less compounding, a more straightforward user experience and curated DeFi Strategies.
Spool was established as a DAO governed project with founding contributors who represent a diverse cross-section of the blockchain community. The DAO is comprised of thought leaders and respected industry figures, who have been tasked with providing careful guidance and support during the formative stages of the DAO. The intention of the DAO is to transition to a more decentralized community-controlled structure as SPOOL Governance Tokens become widely distributed over time.
The project's tokenomics follow an established revenue-sharing model.. Although their community size is relatively small and engagement levels are currently low, there is a huge amount of experience and knowledge from the contributors who appear dedicated to growth and have a clear focus on delivering their commitments.
With a strong foundation and team in place, the project has the resources to execute on its plan. As is often the case in DeFi, success will depend on Spool’s ability to attract investors and increase its TVL..
The Spool Finance ecosystem includes:
Spool Protocol - The Spool Protocol consists of all Smart Contracts that make Spool a usable Decentralized Finance product.
A Spool Smart Vault - A Spool Smart Vault is most easily defined as a new form of "vault".
SPOOL Token - The SPOOL Token is the token fueling the Spool Ecosystem.
voSPOOL Token - The voSPOOL Token is the voting and governance token in the Spool Ecosystem.
As a token whose value is largely defined by its revenue sharing functionality, the success of the SPOOL token will be intrinsically linked to the success of the Spool protocol. As with most DeFi yield aggregators, the Spool protocol’s success can be tied to its TVL. According to DeFi Llama at the time of writing, Spool has $13.7M in TVL, with over 99% of that on Ethereum (Spool is also available on Arbitrum). A steady decline in Spool’s TVL through 2022 largely mirrors that experienced by DeFi protocols overall.
Spool protocol TVL and SPOOL token market cap.
In the near future, Spool intends to increase its adoption through the availability of more types of yield generation strategies, greatly expanding the assets which can be deposited to the protocol, and aggressively targeting institutional investors with Spool offerings which adhere to the regulatory requirements of most jurisdictions. See the roadmap section for additional details.
According to DeFi Llama, there are currently 78 yield aggregation protocols with non-zero TVL, of which Spool ranks 15th. The largest yield aggregator, Yearn Finance, currently has $434 million in TVL, suggesting that Spool has much room to grow within the existing field of DeFi yield aggregation. Such growth will depend on its ability to convince DeFi users of its comparative benefits, particularly those surrounding its ability to mitigate risk through diversified yield farming strategies across multiple protocols utilizing a single smart vault. Should it be successful in attracting more traditional institutional investors, Spool could help grow the overall DeFi ecosystem. Furthermore, a recovery in cryptocurrency markets would present an opportunity for Spool, as DeFi TVL was more than three times its current levels at its peak in late 2021.
The Spool protocol takes a 10% performance fee on profits generated by Spool. For the purposes of illustration, if we assume an average yield of 10%, a $100 million TVL would return $1 million to the protocol per year. Similarly, a $1 billion TVL would return $10 million to the protocol per year.
Token & Tokenomics
The SPOOL Token is a regular ERC20 Token with a maximum supply of 210,000,000.00. The ticker is $SPOOL and it serves as a DAO governance and incentive token for:
Fees/Revenue SPOOL Tokens entitle stakers to 100% of protocol revenue as voted by the DAO. Currently, revenue is split into direct payouts in the form of SPOOL/DAI liquidity (80%) and deposits into the DAO Treasury (20%). Therefore, the foremost Token Utility is protocol revenue capture.
Incentives The Spool DAO can incentivize participants (including itself) via the Spool DAO Treasury and fees.
Risk Model Proposal Risk Model Providers can stake SPOOL Tokens and propose their Risk Model to the DAO. The stake ensures that Risk Models are only proposed by actors who intend to participate in the Protocol in good faith.
Strategy Proposal SPOOL Token Holders can propose new Strategies to the DAO. After their submitted proposal has been passed successfully these Strategies become available for utilization within the Spool Ecosystem.
voSPOOL SPOOL Tokens are required in order to obtain voSPOOL, voSPOOL in turn allows the SPOOL Token Holder to participate in Spool Ecosystem Governance.
Governance via Spool Improvement Proposals (SIPs) SPOOL Token Holders can create their own SIPs, while voSPOOL Holders can vote on SIPs that will determine future protocol changes and upgrades. Due to the majority of SPOOL being distributed to protocol users (see Release Schedule
voSPOOL is a non-transferrable, non-tradeable token that acts as a voting power multiplier within the Spool Ecosystem. The voSPOOL token can be acquired via staking SPOOL Tokens. voSPOOL serves the following purposes:
Directing 50% of all SPOOL Token Emissions: voSPOOL holders can vote on how 50% of SPOOL emissions are distributed across Spool Smart Vaults. Read more on how to participate in Voting on SPOOL Emissions
Voting on Spool Improvement Proposals: voSPOOL holders can use their voSPOOL balance to vote on SIPs in order to participate in Spool Ecosystem Governance.
In the near future, the SPOOL Token supply is expected to be inflationary, while in the long term, the plan is to adopt a schedule that provides for economic sustainability. Initially, 5% (10.5 million) SPOOL Tokens were put into circulation, distributed via a fair launch liquidity bootstrapping event on Balancer. The remaining 95% of the token supply is divided into three categories: DeFi Stakeholders, Builders, Advisors, and Ecosystem, and DAO governed.
The SPOOL Tokens allocated for DeFi Stakeholders (10% or 21 million SPOOL Tokens) will be distributed through linear vesting over a 24-month period, starting six months after the launch of Alpha V1, subject to the fulfillment of their KPIs. The Builders, Advisors, and Ecosystem category (20% or 42 million SPOOL Tokens) will also be distributed through linear vesting over a 24-month period, starting six months after the launch of Alpha V1.
The Builders of Spool will stake their 20% Builders Share of the SPOOL Token supply indefinitely behind a time lock as they vest, ensuring that any significant unlocks are communicated well in advance. The DAO governed category (65%) will have its release schedule determined by the Spool DAO.
This allocation may be used to incentivize Genesis Spools to distribute governance to protocol users, token swaps with other DAOs, bootstrapping liquidity, and other purposes. Votes to determine an initial start of distribution will be held in the near future.
It should be noted that Spool’s reported circulating supply of 25,303,557 SPOOL is below what is currently unlocked according to their stated tokenomics. This is probably due in large part to the time lock for builders. While the time lock should protect users from sudden inflationary events, to our knowledge the exact mechanism(s) for unlocking from the time lock are not published and could be discretionary. Furthermore, 65% of the total supply is governed by the DAO, including its release schedule, which could also cause inflationary events of unknown magnitude at unknown times. Potential buyers of SPOOL should note that 88% of the supply is currently not circulating, creating the potential for 8x dilution.
Founders / Key Team Members
Core Contributor - Hendo Verbeek - Director of Market Making at Artis.
Core Contributor - Philipp Zimmerer - Six years of crypto / blockchain industry experience, primarily focused on strategy.
Core Contributor - Luke Lombe - Partner at Faculty Group; advisor to numerous Web3 companies.
Core Contributor, COO - Axel Prettl - Ph.D. in international corporate taxation from the University of Tübingen
CBDO - Simon Schaber - MBA; Founder, Untitled INC and Untitled Investment Expertise
Head of DeFi - Joshua Bate - Founder of DeSciWorld; decentralized science pioneer.
Head of Institutional Marketing - Maia Benzimra - Nine years (four in web3) of marketing, media, and client relations experience.
Notional Finance, Unstoppable Domains, Trever, AngleDAO, Idle Finance, Yearn Finance, Morpho, AllianceBlock, and Bridge Mutual, Arbitrum, Harvest, Zapper, DeFi Lama, Ledger, TimelessFi, Balancer, Li.fi, Stakewise, Top Wallet, Fireblocks, Attrace, Quadrata, and Pana DAO, Fox Wallet, Li.fi, Unlimited DeFi, Nabux Wallet, Arbitrum, Coinhub Wallet, and Camelot, Deepwaters, Gearbox, Rocketpool, Staking Rewards, Matrixport, Propellerheads, Swapsicle, Backed, KuCoin Wallet, Wido, Galaxis, Nexera, Coinhub, Bitkeep, Teller, Sturdy, Beefy, 21Finance, Blocktrade, Elevated Finance, Ramm Protocol, API3, Artis, Consola Finance, Radiant, TimelessFi, Vaultka, Revest, Frontier, and GMO
Pre Product (Before 2022)
Liquidity Bootstrap Event
Raised a total of $16.65M in DAI
Deployed the SPOOL/DAI Liquidity Pool on Uniswap
Announcement of preDAO Members:
BarnBridge, 4RC, Staking Rewards, Fintech IO, Genesis Block Ventures, Dot Finance, Bridge Mutual, AllianceBlock, Centrality, Minterest, CMS Holdings, Atka Capital, Signum Capital, Boxmining, Faculty Group, and Zokyo
Spool Documentation was released
Complete User-Friendly Documentation on the Spool Protocol & Ecosystem
Published the first Spool Roadmap
Alpha 1.0 (Q1 - 2022)
Deployed the Spool Protocol Smart Contracts
All Smart Contracts that make Spool the protocol it is
7 Supported Yield Generators
Aave, Compound, Convex, Curve, Harvest, Idle, and Yearn
Released Spool Front End Application
Front End to interact with Spool Smart Contracts
The SPOOL Token, token fueling the Spool Ecosystem
SPOOL Token Staking
Fee Revenue Sharing to SPOOL Token Holders
Stakers are entitled to 80% of Spool its Protocol Generated Revenue
Spool Risk Model
The voting and emission routing mechanism within the Spool Ecosystem
Spool Documentation was updated for the final V1 Product Release
Alpha 1.5 (Q2-Q4 - 2022)
The ability to participate in Spool Governance
Spool Governance Forum
Gave Users the ability to have discourse about Governance
SDK for Front End Integrations
Software Development Kit for Spool Integration
Spool HTML iFrame Widget
Widget for easy integration of Spool into any website
User Generated Spool Smart Vaults
Ability for Users to create their own Smart Vaults
voSPOOL Directed Emissions
Ability for voSPOOL Holders to direct the SPOOL Token Emissions to different Smart Vaults
7 New Strategies:
Morpho Aave, Morpho Compound, Convex sUSD, Convex alUSD, Convex fraxUSD, Notional Finance, and Idle Tranches
Announced & Signed Partnerships:
Notional Finance, Unstoppable Domains, Trever, AngleDAO, Idle Finance, Yearn Finance, Morpho, AllianceBlock, and Bridge Mutual
Signed & Unannounced Partnerships:
Arbitrum, Harvest, Zapper, DeFi Lama, Ledger, TimelessFi, Balancer, Li.fi, Stakewise, Top Wallet, Fireblocks, Attrace, Quadrata, and Pana DAO
A Peak Value of $70M TVR is achieved
Spool DAO has deposited $10M worth of DAI to its own Protocol
And generated approximately $100k in Real Yield on these assets
A total of 70 Different Articles were posted on the Spool Medium
Achieved 10k Unique Followers on Twitter
Achieved 5k Unique Discord Members
SPOOL Token received a (Not Officially Supported) listing on the BKEX Exchange
SPOOL Token received a (Not Officially Supported) listing on the Hotbit Exchange
Spool DAO has set up the Industry DeFi Council (IDC)
The IDC is a platform for discourse and exchange in a high-trust environment
IDC its goal is to build a bridge between TradFi & DeFi
IDC Members include partners at some of the largest banks, top ranked law firms and the most innovative DeFi Protocols
Beta 2.0 (Q1 - 2023)
Deployed on Arbitrum
Granting Users the ability to use the Spool Protocol on Arbitrum
6 Arbitrum Spool Strategies
Aave, Abracadabra, Balancer, Curve, Timeless.fi, and Yearn Finance
Deployed the SPOOL Token to Arbitrum
Deployed SPOOL/WETH Liquidity On Arbitrum through Camelot DEX
In turn, Users can now stake their Liquidity Pool Tokens for xGRAIL, GRAIL and SPOOL Token Rewards
Spool published its own Subgraph to The Graph Protocol
Spool DAO members became the first to launch a fully banked Swisse Association
Announced & Signed Partnerships:
Fox Wallet, Li.fi, Unlimited DeFi, Nabux Wallet, Arbitrum, Coinhub Wallet, and Camelot
Signed & Unannounced Partnerships:
Deepwaters, Gearbox, Rocketpool, Staking Rewards, Matrixport, Propellerheads, Swapsicle, Backed, KuCoin Wallet, Wido, Galaxis, Nexera, Coinhub, Bitkeep, Teller, Sturdy, Beefy, 21Finance, Blocktrade, Elevated Finance, Ramm Protocol, API3, Artis, Consola Finance, Radiant, TimelessFi, Vaultka, Revest, Frontier, and GMO
SPOOL Token received a (Not Officially Supported) listing on the Bitget Exchange
Spool V2 (Q2-Q4 - 2023)
Deployment of the V2 Spool Protocol
Audited at launch by Trail Of Bits
Built on the same Battle Tested Logic as Spool V1
V2 Protocol Extends the Spool Protocol Scope to:
Allowing Deposits of all ERC20 Tokens:
Liquidity Pool Tokens (LP Tokens)
Liquid Staking Derivatives (LSDs)
Volatile Tokens (ETH, wBTC, ..)
Multi Collateral Deposits
Allows for Full Scope Portfolio Management
V2 Protocol Extends the Strategy Scope by:
Adding Custom Strategies (“Managed Vaults”)
Adding Volatility Based Strategies
Adding RWA based Strategies (Partnerships signed already)
Think of: US Treasury Yield Pools
V2 Protocol adds “Gating” as a feature:
Allowing for NFT-Gated Smart Vaults
“KYC”-Gated Smart Vaults
Whitelisted Smart Vaults
Gating is also possible upon Exit of a Smart Vault:
Exit Gating allows for Full Compliance, if enabled by the User
V2 Supports Multi Asset Smart Vaults
Allowing for end-to-end Portfolio Construction & Management
V2 Allows for Timelocks
V2 Allows for Multiple “Smart Vault Owners” per Smart Vault
Giving multiple users / protocols the ability to own and manage the same Smart Vault
V2 Supports Asynchronous “DoHardWork” Calls
This ensures full composability and ensures that the Spool Protocol does not get gridlocked when 1 Strategy becomes unavailable
V2 Supports Multi-Chain Deposits
Cross-Chain collateralization, deposits and management
Spool V2 Updated Front End
Support for Multi Asset Smart Vaults
Display of Transactions (Complete Smart Vaults Overview)
Transaction History with CSV-Based Data Export Function
Standard and Advanced view for Transactions (Deposit & Withdrawal)
Support for Automatic Conversion on Deposit
Automatic Allocation of Assets and Advanced Slippage Maintenance
Support for Guards & Actions during Smart Vault Creation
Entry & Exit “Guard” Configurator with CSV-based Data Export Function
Smart Vault Investor Dashboard
Smart Vault Creator Dashboard
Extended Smart Vault Creator Tools:
Incentives Management UI
Extended Fees Management UI
User Settings for the UI
Saved through Session Cookies
Signed Memorandums of Understanding (Partnership Agreements):
Spool Protocol Based Exchange User Earns Program
External Protocols Deposit parts of their Treasury to a Smart Vault
Incentivization of certain Smart Vaults by external Projects
Spool V2 Technical Documentation
Spool V2 Technical Documentation will be released alongside the V2 Protocol
Spool V2 comes with Full Legal Analysis of Institutional Use Cases:
Spool has Multiple Audits that are available on https://docs.spool.fi/technical-reference/audits
Fundraising / Financial
Please note: Deepwaters does not ask projects for financial documents and relies on the statements of the projects and public information.
The Spool DAO was established by a group of accomplished industry leaders who joined forces with a shared objective of creating the Spool Protocol. The initial DAO contributors donated funds to the DAO treasury and committed to a set of specific contributions, based on their skillset, expertise, and network. The treasury has remained entirely under DAO control.
Five percent of the total supply of SPOOL tokens (10.5 million SPOOL) were sold via a fair launch liquidity bootstrapping event on Balancer. This netted $16.65 million in token sale proceeds for the SPOOL DAO, which gives a runway to the end of 2027.
Traction / Community / Media
Twitter - 13.2k+ followers [link]
Telegram members - 942 [link]
Discord members - 6,957 [link]
Medium - 70+ unique articles [link]
Crypto News - Spool partners with Camelot DEX after launching on Arbitrum
Alexa Blockchain - Spool Brings Simplified DeFi Access to 2.4 Million Addresses on Arbitrum One
This report of the SPOOL Network Token (the “Token”), issued by SPOOL Finance (the “Issuer”) is made by Deepwaters EU s.r.o., a Czech limited liability company, company number: 179 11 257, with its registered seat at Rybná 716/24, Staré Město, 110 00 Prague 1, Czech Republic, email: firstname.lastname@example.org (the “Exchange”).
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This report is based on the scope of materials and documentation provided for a limited review at the time provided. The Exchange prepared this report as an informational exercise documenting the due diligence involved in the course of listing of the Client’s token on the Exchange only, and this report makes no claims or guarantees concerning the smart contract's operation after listing. This report provides no opinion or guarantee on the security of the code, smart contracts, project, related assets or anything else at the time of listing or after listing. Smart contracts can be invoked by anyone on the internet and as such carry substantial risk. The Exchange has no duty to monitor the Client’s operation of the project and update the report accordingly.
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