Why Pool-Level Execution

Spout writes one set of calls against the aggregate locked collateral for each asset, rather than separate calls for each individual depositor. This matters for two reasons.

First Reason:
Options contracts cover 100 shares each. A per-vault model would lock out anyone who happens to hold fewer than 100 shares of a given asset, which would defeat the whole point of opening this strategy to non-institutional users. Pool-level execution means a user with five shares of AAPL participates on the same terms as a user with five thousand.

Second Reason:
Pool-level execution smooths the outcomes. When a cycle ends in assignment, the assignment is allocated pro-rata across everyone enrolled in that asset for that cycle. No single user gets disproportionately impacted by a single cycle's outcome. Variance is shared across the pool.