Spool Glossary

Short explainers on all Spool specific terms used within this documentation.

For a more detailed breakdown of items and their relevant functions, please see individual sections of the documentation.

Allocation Provider

The Allocation Provider is a Smart Contract that calculates the strategy allocations based on various input parameters, such as Risk Scores and APYs, but is separate from the Risk Model Provider.

Spool supports the ability for multiple implementations of the Allocation Provider, giving potential different ways of calculating allocations within the Smart Vaults.

For more information see Risk Management.

Asset Group

The Asset Group is a pair or a set of assets used as an underlying currency in Smart Vaults.

For more information see Smart Vaults and Supported Asset Groups.

Deposit NFT (D-NFT)

When a user deposits into a Smart Vault, a D-NFT or a Deposit-NFT is minted as a Deposit Receipt. After the next DoHardWork(), the D-NFT can be burned in exchange for the Smart Vault Token (SVT) it represents.

For more information see Depositing to a Vault and Withdrawing from a Vault.

DoHardWork (DHW)

Do Hard Work is a function call that compounds yield, manages reallocation between Strategies, and handles pending deposits/withdrawals.

For more information see Understanding DoHardWork() and DoHardWork (DHW) Implementation.

Entry/Exit Actions

Entry and Exit Actions are a set of predefined but customizable actions that can be tied with users’ actions, like depositing into the Smart Vault or withdrawing from it. These actions are selected and configured during the Smart Vault Creation Process.

For more information see Entry/Exit Actions.

Entry/Exit Guards

Entry and Exit Guards are a set of predefined but customizable checks that can be put on users’ actions, like depositing into the Smart Vault or withdrawing from it. These checks are selected and configured during the Smart Vault Creation Process.

For more information see Entry/Exit Guards.


Fees refer to the various fees applied within Spool Smart Vaults. They are platform fees, the Vault Owner Fee, and the Management fee.

For more information see Fee Systems.

Ghost Strategy

The Ghost Strategy is a Strategy that is not connected to any specific Underlying Protocol and serves as a mechanism for the removal of actual Strategies in case of an emergency.

Ghost Strategies are generally not visible on the User Interface and are included in all Smart Vaults by default in order to allow for replacing existing Strategies if they are removed.

Management Fees

A fixed fee, set by a Smart Vault Creator, charged on withdrawal.

Master Wallet

The Master Wallet holds assets while they are pending a DoHardWork (DHW) function call.

For more information see Understanding the Buffer System, Withdrawing from a Vault, and Depositing to a Vault.

Performance Fees

A fee, charged over performance, set by a Smart Vault Creator, charged on withdrawal.

The core condition for charging a performance fee is:

(if)withdrawalAmount>depositAmount(if)withdrawalAmount > depositAmount

When the above statement concludes to "True" a positive performance has been generated and the Performance Fee is calculated over the positive result.

Profit=withdrawalAmountdepositAmountProfit = withdrawalAmount-depositAmount

An example would be:

Deposit: $10, withdrawal: $12

1210=212 - 10 = 2

$2 is the "performance" and x% of Performance Fee will be charged over $2.


The Platform is everything Spool related, also referred to as the Spool Ecosystem.

For an overview of the platform, please see the System Diagram.


A protocol is an external Smart Contract or a set of Smart Contracts with some yield-generating mechanism. Understanding a Yield Generator

Spool Smart Vaults route deposits into protocols in exchange for a part of the yield. The interactions are done via the Strategies, which wrap the protocol into a unified interface in the Spool Ecosystem.

For more information see Smart Vaults.

Protocol Rewards

Underlying protocols accrue yield but also emit extra reward tokens. During DHW these are swapped into the underlying asset and reinvested back into the vault.

For more information see DoHardWork (DHW) Implementation.


Reallocating within the Spool Ecosystem refers to a term used to "reallocate" the assets within a given Smart Vault. When the APY or the Risk Score of a Strategy changes, the Smart Vault in conjunction with the Allocation Provider will automatically reallocate the assets within the Smart Vault to optimize for the best risk/reward.

These are Models, created by a Risk Model Provider, that use a variety of factors to assign a Risk Score to each Strategy. Or in simple terms: "A Risk Model quantifies the Risk Score per Yield Generator."

Risk Models are only included within the Spool Ecosystem when vetted and voted on by the DAO.

When creating a new Smart Vault, the Vault Owner can select from the available Risk Models to apply against the Strategies selected for their respective Smart Vault.

For more information see Understanding a Risk Model and Risk Management.

Risk Model Provider

The Risk Model Provider creates and is responsible for maintaining a Risk Model. As a whitelisted EOA, they are authorized to invoke RiskManager.setRiskScores.

These take into account various factors to assign a Risk Score to each Strategy and can be implemented by users when creating their Smart Vaults.

When a given Smart Vault Creator needs an automated on-chain risk provider, they can implement their own Smart Contract to invoke RiskManager.setRiskScores.

For more information see Risk Management.

Risk Score

The Score given by the Risk Model to a particular Protocol.

Risk Appetite

A sliding scale which is selected by a user when creating a Smart Vault which is combined with the Strategy Risk Scores for use by the Allocation Provider. This, in turn, dictates how the Smart Contracts will allocate and maintain the user their assets across the selected Strategies.

The Risk Appetite is a number between 0 (Risk Averse) and 10 (Risk Seeking).

For more information see Setting a Risk Appetite.

Smart Vaults

A Smart Vault is a Smart Contract that combines Strategies, a Risk Model, Guards and Actions into a usable end-user product.

Creation and management of the "Smart Vault" contracts are user-controlled through a "no-code" User Interface.

In addition, the Smart Vaults are a routing system that allocate funds to and moves them between Strategies without locking them.

For more information see Smart Vaults and Understanding a Smart Vault.

Smart Vault Token (SVT)

The SVTs or Smart Vault Tokens represent the user their respective shares in a given Smart Vault.

For more information see Depositing to a Vault.

Spool Admin

Address with administrative rights on Master Vault Level.

For more information see Roles.

Proposals to the DAO to make changes and improvements to the Spool Ecosystem.


The SPOOL Ecosystem Token.

For more information see Understanding the SPOOL Token.

Spool Vault Creator

The creator of a Spool Smart Vault. Curious about how you can create your own Smart Vault? Navigate to Creating a Smart Vault.

Spool Vault Incentives/Rewards

Vault Owners can decide to incentivize their users with arbitrary tokens, setting reward emission amount and duration so the rewards tokens are emitted over a specific period.

SPOOL incentives are a core use-case of this mechanism, where the Spool DAO incentivizes certain Smart Vaults with their SPOOL Token.

SPOOL incentives for Smart Vaults are voted on using a custom UI component that integrates with Snapshot (An external explainer on SnapShot can be found here).

Users can distribute their voting power between vaults that reach the 1% of TVR threshold. The amount of incentives a vault receives is calculated based on the outcome of voting (for 50%) and the profit the vault made relative to other vaults (for 50%).

The resulting amounts are then passed to the Smart Vault to be issued as a reward to the investors utilizing that given Smart Vault.

Other incentives, as defined by the Vault Owners, can be in any ERC-20 Token and do not require voting through DAO governance.


General participant within the Spool Ecosystem.


These are adapters connecting the Spool ecosystem to a specific underlying Protocol. They handle the routing of deposits, withdrawals, and other communication with the external protocol.

Yield is generated on a Strategy Level by the External Protocol, see Understanding a Yield Generator.

For more information see Understanding a Strategy, Smart Vaults, and Vault Strategy Share Reallocation.

Strategy Share Tokens (SST)

The SSTs or Strategy Share Tokens represent shares of the underlying assets locked in a particular strategy.

Supported Asset Group (SAG)

Each Strategy has an underlying asset used for deposits. Spool groups these assets into Supported Asset Groups (SAGs). On Smart Vault Creation, the Creator directly decides which strategies will be used, with the UI only allowing selection from those strategies with the same underlying tokens.

The selected SAG then dictates which strategies are available for inclusion in the Smart Vault.

For more information see Supported Asset Groups.

Total Value Routed (TVR)

Spool Smart Vaults are non-custodial solutions and route assets rather than holding them.

The TVR metric measures the total value that was routed through the Spool Protocol to the underlying protocols. TVR is one of the key performance indicators for Spool protocol.

Vault Owner

"Owner" of one or more Smart Vaults. The vault owner is entitled to a Management Fee and Performance Fees from users using their respective Smart Vault(s).

They also have the ability to add, edit and remove other admins from the Vault they own.

For more information see Roles.

Vault Admin

A specific address with administrative rights in Smart Vaults.

Such privileges (depending on the Smart Vault configuration) include:

  • Withdrawing funds from a Smart Vault

    • A Smart Vault Administrator cannot withdraw "other users" their funds to their own wallet.

  • Removing Smart Vault Participants

Adding and removing administrators will require smart contract interaction and will be done via the user interface by a Vault Owner.

For more information see Roles.

Vault Sync

The Vault Sync step updates the Vault State after DHW is completed. Vault Sync runs automatically when the first user after DHW executes an action on the Smart Vault (deposits, withdraws, claims), but a Vault can also synchronized separately if needed.

As part of this, the Vault Sync:

Vault Flush

Having the option of running DoHardWork (DHW) in an asynchronous manner and executing it separately for each of the Strategies leads to users receiving their receipt tokens gradually.

In order to ensure deterministic outcomes, all deposits are pooled at the Smart Vault level, pending a vault flush, before being sent to DHW for processing.

Simply put, a vault flush is a synchronization point and can be executed by any user, at which point the funds aggregated within a specific “vault flush” period are made available to DHW.

Please note, a Vault Flush can only occur if DoHardWork processes for the previous Flush are completed, preventing overlapping DHW Indexes.

For more information see Vault Flush Implementation.

Vault Owner Incentives

These are incentives in the form of ERC20-Tokens added to Smart Vaults by the Vault Owner.

For more information see Vault Owner Incentives and Vault Configuration

Vault Strategy Share Reallocation

Due to the market changes and protocol dynamics, the Vault-Strategy share allocations have to be periodically reallocated to correctly reflect the Smart Vault its Risk Assessment.

Reallocation adjusts capital allocation to maximize capital efficiency within the constraints of the parameters and Risk Appetite set by each individual Spool Smart Vault. This happens periodically depending on the gas prices and Smart Vault.

For more information see Vault Strategy Share Reallocation.

Withdrawal NFT (W-NFT)

The Withdrawal NFT represents a pending withdrawal.

When a user requests a withdrawal from a Smart Vault, a W-NFT or a withdrawal NFT is minted as a Withdrawal Receipt.

After the next DoHardWork (DHW), the W-NFT can be burned in exchange for the withdrawn asset token it represents. Burning of the W-NFT burns also the wrapped Smart Vault Tokens (SVTs).

For more information see Withdrawing from a Vault.

The voting token for the Spool Ecosystem.

For more information see Understanding voSPOOL.

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