A variety of DeFi liquidity mining products has become the hottest topic in the market. Almost all market participants are rushing in, hoping to ride the wave while the wind is blowing. However, it is not simple to profit from liquidity mining as it may seem. Much knowledge is needed to participate in the liquidity mining and the threshold for entry is relatively high.
We can certainly make a higher profit by operating DeFi mining by ourselves. But that comes with a condition, which is the initial capital as well as rich mining knowledge, which happens to be a luxury to most of us. That being said, it does not mean that you are going to miss out on the opportunity. In fact, you can choose the DeFi Smart Pool that is one of the most well-established options available for use.
What is the conventional smart pool?
Zhuoer Jiang from BTC.top is famous for his smart pool because his pool can adjust hashrate between BTC，BCH and other SHA256 coins. A mining pool will then be able to maximize its profits by doing so.
Now you may wonder what a smart pool actually is. A smart pool is the mining pool that automatically switches hashrate to the most profitable coin of the same algorithm. The goal of a smart pool is to create more value for clients than mining a single coin. Because of its operational flexibility with the goal of maximizing profit, people describe this type of mining pool as “smart”.
The condition for a smart pool to function is that its clients cannot designate which coin to mine. The mining pool supports coins of the same algorithm and automatically switches hashrate to whichever coin makes the most profit. If the profit from a coin drops, the pool will adjust hashrate accordingly. As such, a smart pool always makes the most efficient use of hashrate.
What about Smart Pool in DeFi world?
When it comes to DeFi, a methodology similar to “smart pool” is getting popular, which is called DeFi Smart Pool. Its operation assures the best profits in DeFi projects.
The way a DeFi smart pool works is similar to that of the conventional smart pool. The major difference is that a DeFi smart pool is switching between capitals, while the traditional smart pool is alternating the hashrate. That is to say, a DeFi smart pool will switch assets to the most profitable DeFi project, which helps investors achieve the best returns.
Another difference is that a DeFi smart pool only needs cryptocurrency holdings to participate in mining. While a traditional smart pool requires mining hardware and infrastructure, before it can operate.
Matrixport is a platform that facilitates DeFi smart pools. Users of Matrixport participate in the 3rd-party DeFi projects by depositing their cryptocurrencies, such as USDT, USDC, BTC, BCH and ETH, on Matrixport. It will enable users to participate in mining to make a profit, then settle profit into users’ accounts on a daily basis. Please be aware that users will receive the same cryptocurrency as their initial investment. According to the source, DeFi liquidity mining projects on Matrixport are those generating good investment returns, which include YFV (yfv.finance), CURVE (curve.fi) and others.
Why should a user choose a DeFi smart pool?
The most significant benefit of a DeFi smart pool is higher profits. Pursuing possibly the highest return is the ultimate goal for investors. As such, DeFi smart pools meet the needs of investors by allocating capital to more profitable projects.
Taking Matrixport as an example, the DeFi smart pools adjust strategy in real-time to maximize the mining profits. It also introduces a rule of hourly-compounded interest, to further boost investment returns of users. Matrixport calculates users’ compounding interest every hour and reinvests interests along with the principals. With repetitive operations, the platform helps its users to keep their profits rolling like a snowball.
DeFi smart pools remove entry hurdles for participants, hence making mining much more accessible to everyone. An obvious obstacle that limits the participation in DeFi is the complicated procedures. A user has to acquire adequate knowledge on token conversion, pledging, pool selection and more. This can bring headaches to many potential participants. Let alone the other problems, such as losing coins, receiving fake coins, and sending to the wrong address. Therefore, a smart pool is a much safer option for users given that it simplifies the entire process. Taking a look at Matrixport smart pools, it is as simple as one-click to participate in DeFi mining, thereby enabling all users to participate in a simplified manner, regardless of your experience.
In addition, DeFi smart pools like the ones on Matrixport lower the minimum requirements on capital, which allow many more retail investors to participate in DeFi mining. Gas Fees for DeFi mining can be expensive, and investors can lose money if their profits can’t offset the fees. However, DeFi smart pools collect initial capital from many small retail investors, so the capital requirements are much lower.
Low Gas fee
DeFi smart pools consume fewer Gas Fees because of the high concentration of funds and less contracts. The Gas Fees are spread evenly among users, which ends up being close to zero fees. Why’s that? DeFi mining consists of several steps and each involves 1–2 contracts. The Gas fees for each contract can cost between 10 USD to 80 USD. The fees can be higher if the Ethereum blockchain becomes congested.
It is indeed difficult to pick the right DeFi project. Dozens of projects are available to participate in, but which one should you pick? Every investor wants a safe, secure and profitable project, but the decision making takes time and effort. Moreover, the market may have moved onto a new trend.
DeFi smart pools are a better option as the organization behind it has done asset research. Users are presented with relatively safe and profitable options. Again, take Matrixport as an example. The platform has industry expertise screening projects and selecting projects that meet the needs. In addition, the team adjusts positions in real time to help users achieve the highest profits possible.
For experienced investors, risk management comes first. In particular, the cryptocurrency field is full of chaos and disinfo, which makes it even harder to guard the safety of funds. As a retail investor, it’s simpler to take a shortcut by commissioning experienced professional platforms like Matrixport.
DeFi projects on Matrixport have gone through numerous security audits and vetting before being made available to trade. These projects have relatively higher investment performance, good industry reputation and high popularity. DeFi Smart Pools on Matrixport allow users to deposit or withdraw funds at any time, which truly makes users the master of their own funds. In addition to that, Matrixport introduces a multi-layer security method that guards the safety of users’ funds. A delicate team closely monitors the market updates and makes quick responses if anything comes unusually.
It’s just the beginning of the DeFi world, and both possibilities of “winning” and “losing” exist. Do your research before investing in a platform, then embrace the outcomes whichever it may be. We’d like to add a kind reminder to end the article: DeFi is risky and investors should invest with care.
Matrixport supports BTC, ETH, BCH, USDT, USDC now for the DeFi Smart Pool, users can deposit and withdraw at anytime to earn compound interest with the featured projects.
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