The DeFi derivatives market’s total value reached $27.12 billion last month. And while digital assets have become more popular and have the potential to change how people invest, they still remain pretty complex to navigate and manage comprehensive yield-generating portfolios for traditional institutions and old-school individual investors. Spool, a DAO that aims to create better and simpler composable access to DeFi, has added 3 new yield generators to its strategy offering.
Spool DAO is building a simplified infrastructure for DeFi investment products. By prioritizing accessibility and customization, Spool brings decentralized investment to a global audience through a single interface. With its investment ‘toolbox’ for institutions and investors, Spool paves the way for a diversified, risk-adjusted DeFi returns.
The firm mentioned in a press release shared with AlexaBlockchain that the new strategy additions from leading protocols including Frax Cryptocurrency, Idle Finance, and Notional Finance to the Smart Vault creation tool enable greater customization and choice for the Spool community to build diversified and robust yield portfolios.
The added yield generators include:
- Notional Finance which provides liquidity to the NF Protocol, offering fixed interest rate loans in a borrowing mechanism without time-based lockups.
- Frax-Convex which embodies Frax’s vision to create a highly-scalable, decentralized currency in place of fixed-supply digital assets.
- Idle Finance which encourages active and democratized DeFi investment. The “Best Yield” aggregator strategy offers portfolio creators the best yield available on Aave and Compound.
Matteo Pandolfi, CEO at Idle Finance, points out that composability is one of the most disruptive features of DeFi.
“Having our strategies integrated by DeFi protocols like Spool is not only a win-win solution for both of our projects, but it’s the best solution for users, who can find a wide selection of products in a seamless and efficient fashion,” Matteo said.
According to Teddy Woodward, CEO at Notional Finance, “Setting up a Smart Vault with Spool is easy and intuitive. Giving DeFi users the power to control their portfolio risk parameters in just a few clicks is a huge step forward for the space.”
DeFi platforms can often find themselves creating complicated products that only hardcore crypto enthusiasts can navigate. Due to DeFi’s technological and financial complexity, its adoption rate with institutional players and retail investors remains low in comparison to centralized blockchain products. But this creates a new opportunity for projects on the forefront of community-building to create simplified, user-friendly solutions to bring DeFi products to a wider audience.
Karl-Michael Henneking, CMO at Spool, said:
“Expanding our range of strategies and Smart Vaults highlights how necessary it is for investors to have choice and variety when creating a DeFi portfolio.”
“Our new integrations show that DeFi is ready for institutions and investor communities by utilizing the ever-expanding infrastructure that Spool is providing,” Karl said.
Read Also: Spool Launches A New Tool For Simplifying Risk-managed Yield Portfolio Creation
