Choosing a pool for investment
In this section, we will look at how to choose the right pool for investment.
We usually do not give advice on which pools to invest in, as this is an individual matter and depends on the strategy and level of risk tolerance of a particular investor. Below, we will provide basic recommendations for beginners in liquidity farming.
It is important to note that before investing in DeFi yield pools, you need to get familiar with risks.
For beginners who are just starting their journey in staking, we recommend starting with coin pools which your wallets already hold. Such a strategy is somewhat reminiscent of a bank deposit - you get a return on assets that you already have in your account.
Using the Stakeable Only filter, you can filter out the pools of coins that are on your cryptocurrency wallet, or find pools with the coins you are interested in by entering the name of the token in the Search field:
One of the more conservative staking options is staking into stablecoin pools.
Use the Stable Only filter to filter out these pools:
When choosing a pool, pay attention to the following indicators:
- APY - the pool's total annual return, obtained using UNO smart reinvestment algorithms;
- Pool size - usually, the large size of the pool indirectly indicates its reliability.;
- Yield source icon - income source project icon. UNO carefully examines each source of income before its integration.
So, let's assume that you've chosen USDC-WETH pool on QuickSwap DEX.
Remember that when investing in a pool of several coins, you need to use an equal quantity (equal proportion) of tokens in dollar terms. For example, if you invest 1000 USDC in the USDC-WETH pool, you will need to invest 1000 USDC and WETH in the amount of approximately $1000. When withdrawing funds from the pool, you can get them back to your wallet in a different proportion (depending on the state of the pool at the time of withdrawal).
When choosing a pool, pay attention to each coin which it consists of, since by investing in a pool of several coins, you take on the risks for each of them.
Also remember the basic rule of investing: usually, the higher the return, the higher the risk. Therefore, the pools with the highest returns are often the most risky to invest.