Spool — Fair Launch LBP

Yelay

Published in

Yelay

6 min readNov 22, 2021

tl;dr

Spool is a permissionless DeFi middleware ‘toolkit’ that allows users to create fully customised, automated, and diversified yield farming portfolios with a single deposit.
Spool is running a Balancer Liquidity Bootstrapping Pool (LBP) Fair Launch via Copper.
The Spool Fair Launch will be held on Dec 13, 2021 at 17:00 UTC and will be active for 3 days, concluding on Dec 16, 2021 at 17:00 UTC.
Spool will be distributing up to 5% of the SPOOL token total supply with a starting price of 2.44 DAI.
Join the Discord to learn more.

Spool Fair Launch LBP

Spool has arrived. It’s time to change the way you think about DeFi.

The Spool DAO set out with the aim of building middleware that provides users with a unique toolset for building fully customised, automated, and risk-managed DeFi portfolios while at the same time supplying DeFi protocols with more, currently untapped, liquidity.

Spool does not stop at an initial product — thanks to months of brainstorming and laying the groundwork, Spool is developing an ecosystem that makes DeFi on Ethereum more composable and affordable, not only for users but also for builders.

After countless hours of work and the guidance and support of the Founding DAO Contributors, Spool is finally preparing for the launch of the SPOOL governance token, opening up the DAO for anyone to contribute and as a first step for further decentralization of the Spool DAO.

“I think Spool is well positioned as an incredibly promising DeFi middleware…
CMS plans to help support Spool in any way necessary throughout this developmental phase.”
Dan Matuszewski — CMS Holdings

What is Spool?

Spool is a permissionless DeFi middleware ‘toolkit’ that allows users to create fully customised, automated, and diversified yield farming portfolios with a single deposit.

Select your favourite yield generators from a list of supported protocols and create a diversified portfolio based on your individual risk appetite… All accessible through a single deposit address.

After depositing, Spool automatically manages deposits to optimize risk/reward for individual users within the given terms under which their capital was deposited — Spool regularly rebalances liquidity between yield generating DeFi protocols, while taking individual user’s risk tolerance and array of selected strategies into account.

Spool represents the next evolutionary step for DeFi on Ethereum by allowing for diversification, compounding, and rebalancing at affordable gas prices via a buffer system and transaction batching.

“I look forward to Spool helping me allocate funds automatically and cleverly, and using algorithms, instead of hard work, to increase profits and reduce risks.”
Shixing ‘Discus Fish’ Mao — F2Pool

Spool - The Foundation to a Finance Ecosystem

Spool aims to be much more than a tool to create customised and automated DeFi portfolios.

It enables builders to easily access and combine existing and new DeFi legos, creating possibilities for novel user-facing products that leverage the power of all of DeFi instead of just a few individual primitives.

Spool is designed to serve as the backend for DeFi-powered financial products and applications. One example is the possibility of tokenized Spools acting as custom, fixed-term yield bearing assets that can be easily traded on secondary markets, thereby allowing non-crypto native institutional finance entities to gain exposure to DeFi and removing almost all friction and barriers to entry.

Set up as a fully DAO-governed and agnostic middleware, Spool is poised to become the gateway for thousands of DeFi applications and millions of yield-seeking end users, while acting as a liquidity router that fairly fuels both new and incumbent protocols with the liquidity they need.

The Spool Fair Launch

Spool is running a Balancer Liquidity Bootstrapping Pool (LBP) Fair Launch via Copper, in response to increasing requests for access to SPOOL tokens and to provide a capital foundation for ongoing technical and business development.

The Spool Fair Launch will be held on Dec 13, 2021 at 17:00 UTC and will be active for 3 days, concluding on Dec 16, 2021 at 17:00 UTC.

100% of proceeds will be transferred to the Spool DAO Treasury for ongoing business and technical development.

The Fair Launch marks an exciting step in Spool’s journey and begins the release phase, which includes a number of important milestones.

This is the first public offering of SPOOL tokens and the only opportunity for the Spool community to purchase tokens prior to launch.

Spool will be distributing up to 5% of the SPOOL token total supply with a starting price of 2.44 DAI.

The Spool Fair Launch LBP will be a two-token pool with SPOOL and DAI. The LBP will start at a pool weight of SPOOL : DAI = 96 : 4 and will gradually shift on a linear step-down to SPOOL : DAI = 50 : 50 over the 3-day period, creating downward pressure on the price.

“Spool’s middleware solution allows us to create custom strategies that can be integrated in DeFi applications via SDKs. As a fund that is actively ‘farming’ and holding a firm interest in DeFi, this is a toolset that we believe has been missing from the market and we look forward to deploying Spool to provide superior risk-mitigated outcomes for our fund strategies.”
Leslie Tam — Genesis Block Ventures

Why an LBP?

An LBP is an adjustable Balancer smart contract that is used for initial distribution and price discovery of new assets. It creates constant selling pressure over a fixed time period, leading the price to continually drop if there is no demand. The weights are initially set heavily in favour of SPOOL, then gradually flip to favour DAI by the end of the sale.

The linear step-down creates constant downward pressure on the price, which tends to balance the upward buy pressure, ideally keeping the price oscillating around perceived market value. This relatively stable price discourages arbitrage bot manipulation as they can’t count on the price steadily going up.

Large buyers are incentivised to split their trades into a series of smaller tranches over a longer period of time to avoid driving the price up, making it easier for everybody else to participate.

To understand more about what an LBP is, please check this detailed Balancer Medium article.

A detailed guide on ‘how to’ participate in the Spool LBP will be shared this week.

“4RC will build and leverage custom vaults to automate and optimise specific risk-managed yield strategies at scale.”
Keegan Selby — Fourth Revolution Capital

Why participate in the Spool Fair Launch LBP?

Spool is rapidly approaching Alpha product launch and the Fair Launch LBP is the only opportunity to acquire tokens prior to launch.

As a SPOOL token holder you will join the DAO alongside the Founding DAO Contributors listed above and be conferred the same prorated governance rights to vote on DAO proposal and determine the path forward for Spool. Spool token holders are also entitled to receive a share of platform performance fees.

The benefits of participating in this LBP and being an early SPOOL holder include:

#1 — Liquid SPOOL

All SPOOL tokens outside the LBP are either locked or vested, the only fully unlocked SPOOL purchasable is from the LBP.

#2 — Immediate Utility

SPOOL tokens will have immediate governance utility and additional benefits, such as performance fees. Fees can be derived from the Genesis Spools, launching some time after the LBP.

#3 — DAO Support

All funds raised in the LBP go straight to the DAO Treasury, managed by SPOOL stakers. After the conclusion of the LBP, the raised DAI and remaining tokens return to the DAO, which is entirely governed by the SPOOL token.

“We look forward to utilising Spool to achieve optimised results for our fund-specific investment strategies.”
James Wo — DFG

Fair Launch Details

Where: www.copperlaunch.com & www.spool.fi

Begins: December 13, 2021 17:00 UTC

Concludes: December 16, 2021 17:00 UTC

SPOOL Max Supply: 210,000,000 SPOOL

LBP Base Pair: DAI/SPOOL

Initial SPOOL liquidity provided: 10,500,000 SPOOL (5% of Total Supply)

Initial DAI liquidity provided: 1,050,000 DAI

LBP Weights: Starting at 96:4 and will gradually adjust to 50:50

SPOOL LBP Starting price: 2.44 DAI

“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.”
Bowen Zhao — JRR Group

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