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.
Last updated