Spool partners with Staking Rewards in building the next generation of DeFi yield products

Spool is thrilled to announce our recent partnership with Staking Rewards, a dominant data provider for staking and crypto-growth instruments, marking a significant milestone in Spool’s aspiration to be the primary infrastructure provider for DeFi investment solutions.

This alliance pioneers the use of Spool’s infrastructure by Staking Rewards to craft a unique product — a heavily diversified index fund named “Staking Rewards Optimised ETH” (srETH) — which will be engineered through the Spool API and directly accessible via the Staking Rewards website.

Staking Rewards is the market leader for staking data and research. Founded in 2017, Staking Rewards provides insights and investment tools for private and institutional investors through unbiased & live staking market data.

Moreover, Staking Rewards provide simplified portfolio & calculator tools and conduct deep and unbiased research analysis about the staking industry. The Staking Rewards API is already used across leading industry entities such as Bloomberg, Binance, Kraken, and Coinbase.

“This partnership represents a key part of the continuing move by Spool to become the infrastructure layer for DeFi investment. “

Our combined aim is to construct a comprehensively diversified investment asset, covering a broad spectrum of strategies, to serve as an all-weather liquid staking index that minimizes volatility and generates a more predictable yield for long-term Ethereum investments. This is distinct from current market offerings such as Exchange-Traded Products or token baskets, which are mere collections of staking-based tokens.

Spool’s B2B2C infrastructure model empowers Staking Rewards to construct a product that directly tackles key user challenges:

1. Complexity in DeFi and investment management: This solution provides a unified platform for easy and swift investment management.
2. Time and cost of managing multiple investments: srETH offers full automation post-investment to assure optimal returns based on the risk profile, mitigating risks against attacks on individual strategies.
3. Tax reporting complications from multiple strategies: A single hub simplifies the reporting process for investors.

As an optimised ETH staking rewards product, srETH leverages strategies from premier ETH staking providers such as Lido, Rocket Pool and Frax Finance, this always ensures the best vanilla staking rewards on ETH.

srETH then allocates a small percentage of funds to a diverse selection of robust and track-proven DeFi strategies. These strategies have demonstrated their resilience across various economic environments and are proactively kept in check by the Staking Rewards team. This meticulously managed approach is made possible through the implementation of Spool’s Smart Vault technology, ensuring the portfolio remains well-positioned in changing reward market conditions.

With Spool’s risk management infrastructure, we anticipate performance to surpass market rates while maintaining safety and security for all investors using the product.

Key benefits of the srETH product include:

1. Automated Portfolio Optimisation: Funds will be automatically allocated across various Ethereum DeFi yield protocols, assuring optimal returns without manual handling.
2. Reduced Gas Fees: srETH will adopt a capital-efficient strategy to minimise gas fees and flash-loan costs.
3. Transparency and Performance tracking: Complete performance metrics will provide investors with a transparent view of product operation and performance tracking.
4. Regulatory Compliance: srETH aims to meet applicable regulatory and legal constraints, making it accessible to a broad international investor base.
5. Future-Facing: srETH is designed to accommodate adaptability and future enhancements, allowing for the addition of new protocols and strategies.
6. Resilient Rewards: The index uses risk-optimized yield strategies that are specifically designed to produce reliable yield for Ethereum investors over the long term.
7. The Best of Staking + DeFi: Always the best vanilla staking rewards on ETH, backed by additional yield from Staking Rewards’ trusted DeFi partners.
8. Guidance from Staking Pioneers: srETH is proactively kept in check by Staking Rewards’ team of unbiased researchers committed to your staking success.

Overall, this collaborative venture between Spool and Staking Rewards promises to provide a comprehensive solution to the challenges currently faced by DeFi investors.

By partnering with Staking Rewards, Spool is enabling the creation of a bespoke product that supports and helps users easily and safely enter decentralized finance.

As a key player in providing data analytics to DeFi investors, Staking Rewards are perfectly positioned to take advantage of the Spool architecture and build products they know their audience needs.

A true win-win scenario, both for Spool and Staking Rewards, as well as the thousands of DeFi investors who stand to benefit from the srETH product. As the move to Spool V2 continues, Staking Rewards will lead the way in providing risk-managed DeFi investing to their users, and we look forward to the partnership continuing to grow and develop over time.

Become one of the first to use srETH by signing up for Early Access through Staking Rewards’ dedicated portal.

For more information on how your company can take advantage of the DeFi infrastructure solutions offered by Spool, visit enterprise.spool.fi and arrange a call with one of our specialists today.