When investing in a new DeFi platform, users often have to do extensive research to ascertain if the risk assessment model is best tailored to their needs. With AI paving the way for more data-driven and safe investments, users and institutions are looking for projects that offer a model that can deliver personalized options based on their own set of parameters.
Spool DAO, a DeFi infrastructure for risk-managed investment crypto products, and Solity Network join forces to do just that, by bringing AI capabilities to enable users and institutions to build their own risk assessment that best suit their needs. By adding the model, Spool’s users will be able to utilize Solity’s AI-powered risk framework to build a smart vault that will enable them flexibility in risk management for decentralized investments.
Solity Network utilizes machine learning and real-time fundamental risk processing to help users define their risk appetites. Users can select a risk model when building a personalized DeFi protocol or Smart Vault, which then determines fund allocation and investment activities based on a set of vetted risk parameters.
Solity Network’s risk model incorporates various dimensions and parameters, including development activity, social activity, security, liquidity, decentralization, and tokenomics. These factors provide a multi-level risk score for each protocol, creating a transparent risk framework.
To ensure community involvement in selecting risk model frameworks, Risk Model Providers must pass a DAO vote to be added to Spool. Once approved, providers like Solity Network may receive a 5 percent performance fee from users who choose to adhere to their risk model.
The addition of external Risk Model Providers expands Spool’s capabilities in the DeFi space, offering Smart Vault creators a wide range of choices when building their investment products. Spool aims to create a comprehensive infrastructure that leverages user choice in decentralized investment.
The partnership with Solity Network strengthens Spool’s position as a platform that enables investors to tailor their risk-managed DeFi investment portfolios. By incorporating external risk models, Spool aims to simplify decentralized investment and eliminate complexity and unclear risk.
Hendo Verbeek, the Head of Risk at Spool DAO, emphasizes the importance of expanding collaboration within the DeFi industry to foster its growth and success. Verbeek expresses immense pride in leading the charge by adding Solity Network as the first Risk Model Provider on Spool’s platform.
According to Verbeek, the true value of DeFi lies in the ability to connect the best innovations in the space, ultimately improving the user experience and building a strong and diverse industry. The addition of Solity Network as a Risk Model Provider is just the beginning of this process, as it opens up new possibilities and widens the range of choices available to Spool’s users.
Benedikt Eikmanns, the Co-Founder and CEO of Solity Network, highlights the opportunity it presents for the community to explore Solity Network’s risk assessment capabilities. Eikmanns emphasizes that Solity Network’s goals align perfectly with Spool’s vision of providing a powerful, transparent, and intelligent infrastructure for DeFi.
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