Understanding the Buffer System

The Buffer System refers to the way Spool aggregates withdrawals and deposits. Let us make a comparison to understand the difference between regular protocols:

• Regular Protocol:

  • Every user deposits for themselves

  • Every user withdraws for themselves

  • If deposits and withdrawals happen at the same time they don not "match" with each other, instead they act separately

  • Deposits/withdrawals are expensive

• Spool with the Buffer System:

  • Every user deposits to the buffer

  • Every user withdraws from the buffer

  • If deposits and withdrawals happen at the same time they are matched with each other

  • Deposits and withdrawals to the protocol happen when the "DoHardWork()" function is called. Meaning: No user pays for the complexity of their deposit/withdrawal, so costs are split

The Spool Buffer System allows cheaper interactions with the Spool Protocol while ensuring no capital inefficiencies are suffered.

On a technical level, the Buffer System is the "Master Wallet": MasterWallet.sol.