Risk management is a key focus of the Spool DAO, and this clearly comes through the release of Spool V2. As we look to support and work with other projects in the ecosystem, a natural partnership formed with Promethium, a project that also shares this focus on improving the safety of investors in DeFi.
Based on Arbitrum, Promethium is a liquidity re-balancer, allowing you to maximize your lending returns and minimize borrowing spending with its automated re-balancing and refinancing algorithm.
Their lending positions re-balancer is made up of two distinct parts, the backend to monitor lending protocols and calculate the distribution matrix, matched with smart contracts to execute the transactions and ensure the highest monthly APY for lending positions.
The borrowing positions re-balancer works in the same way but focuses on reducing the APY of your borrowed positions.
Combined, this creates a solution where not only are you earning the most from your lending, but you are also getting the cheapest leverage to fully optimize both sides of your financial activity.
This partnership announcement marks the first step in a collaborative partnership as both projects share the vision of safer, better risk-managed DeFi investing. As with Spool V1, the Spool DAO plans to launch V2 onto Arbitrum in the near future, at which point Promethium intends to use Spool as a risk-management yield solution for their users.
Until then, both parties are working together to improve and raise awareness of risk management, security, and other challenges within the DeFi ecosystem and will be co-authoring various articles and hosting joint events including an upcoming X (formerly “Twitter”) space.
For more information on Promethium, visit promethium.finance.
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Spool is a permissionless DeFi platform that connects Capital Aggregators with DeFi Yield Generators. Funds are dynamically and efficiently allocated to ensure optimized yields, for custom strategies, managed by DAO-curated Risk Models.
Spool was established as a DAO, with a selection of founding contributors representing a diverse cross-section of the blockchain community.
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