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How to Invest in Smart Pools: A Step-by-Step Guide

Smart Pools offer an innovative way to invest in cryptocurrency pairs with automated strategies. This guide will walk you through the process of investing in Smart Pools.

Step 1: Find a pool​

The first step in your Smart Pool investment journey is to find the right pool for you. Here's what to consider:

  • Risk-Reward Balance: Look for Smart Pools that align with your risk tolerance and investment goals. Some pools may offer higher potential returns but come with increased risk, while others may be more conservative.

  • Incentivized Pools: Keep an eye out for pools that offer extra incentives. These pools may provide additional rewards, such as bonus tokens or higher yields, which can boost your overall returns.

  • Research: Take time to understand the strategy of each pool. Look at historical performance, the assets involved, and the underlying algorithm or strategy the pool uses.

Step 2: Prepare funds​

Once you've chosen a pool, you need to prepare your funds for deposit. This step is crucial:

  • Asset Ratio: Smart Pool Vaults require deposits in a specific ratio of two assets. You'll need to acquire both assets in the correct proportion.

  • Single-Sided Deposit: If you don't have both assets or prefer to use a single asset, you can use the single-sided deposit widget powered by Enso. This tool allows you to swap from any asset into the required pool assets.

  • Gas Fees: Don't forget to keep some native tokens (like ETH for Ethereum-based pools) for gas fees.

Single Sided Deposit via Enso

note

Reach out to Enso's team for support regarding single sided deposits.

Step 3: Deposit​

Deposit

With your funds prepared, you're ready to make your deposit:

  1. Connect your wallet to the Smart Pool platform.
  2. Select the pool you want to invest in.
  3. Enter the amount you wish to deposit.
  4. If using the single-sided deposit feature, select your input asset and amount.
  5. Approve the transaction(s) in your wallet.
  6. Confirm the deposit and wait for the transaction to complete.

After a successful deposit, you'll receive LP (Liquidity Provider) tokens representing your share in the pool.

Step 4: Follow the Markets and wait!​

After depositing, your investment is working for you:

  • Monitor Performance: Keep an eye on your pool's performance. Most platforms provide dashboards where you can track your investment.

  • Stay Informed: Follow market trends and news that might affect your invested assets.

  • Be Patient: Smart Pools are often designed for medium to long-term investments. Give your investment time to grow and weather short-term market fluctuations.

Step 5: Withdraw​

When you're ready to exit your position:

  1. Go to the withdrawal section of the Smart Pool platform.
  2. Select the pool you want to withdraw from.
  3. Enter the amount of LP tokens you want to redeem.
  4. Choose whether you want to receive the underlying assets or a single asset.
  5. Confirm the transaction in your wallet.

Remember that some pools might have lockup periods or withdrawal fees, so be sure to check these details before investing.

By following these steps, you can navigate the process of investing in Smart Pools. As with any investment, make sure to do your own research and never invest more than you can afford to lose.

tip

Feel free to reach out for any support!