Understanding a Smart Vault
A Spool Smart Vault is a Smart Contract that routes deposits into an array of different Yield Generators in a risk-managed and yield-optimized manner.
In simple terms, a Smart Vault could be compared to a "traditional DeFi vault”, as both take on the job of managing and compounding capital via a strategy. The key difference is that a Spool Smart Vault can be individually setup by users in a permissionless manner.
A Smart Vault contains an assigned Risk Appetite, a chosen Risk Model, and a subset of selected Yield Generators. Mind you that a Smart Vault does not hold user funds directly in the contract itself.
A Spool Smart Vault its contents.