Steer Protocol has recently emerged as a highly sought-after option for sFLR holders seeking to maximize their returns. The driving force behind this popularity is Steer's Smart Pools, which offer an array of sFLR pairs with impressive Annual Percentage Rates (APRs).
Unlike traditional liquidity pools, Smart Pools eliminates the need for manual liquidity management. For a deeper dive into this innovative system, check out Derek Barrera, from Steer, talking about it on a recent Flare Factor episode.
In this tutorial, we are going to walk you through the process of depositing on a Steer Protocol Smart Pool, but before depositing on any liquidity pool, whether smart or traditional, it's essential to consider the factors we've covered in this tutorial. Without any further ado, let’s jump in.
Connecting your wallet to Steer Protocol and selecting the correct network
The first thing you need to do is, obviously, connect your wallet to the Steer Protocol app. If you don't see sFLR options immediately, ensure that Flare is selected as your network. Steer currently supports 27 chains and facilitates token swapping and bridging between them. To choose Flare, locate the network selector in the top right corner, just before your wallet.
Once you've selected Flare, a list of Smart Pools will be displayed. Currently, Spark and SparkDEX 3.2 are the only supported protocols, but this is likely to expand as more protocols emerge on the Flare network. To filter the list for pools containing Sceptre's liquid staking token, simply click the search button and enter 'sFLR'.
Key points for choosing a Smart Pool
When selecting a Smart Pool on Steer, you should consider the following factors:
Pool: The specific token pair accepted by the pool. To deposit, ensure you have equal values of both tokens or adhere to the pool's asset ratio, which we'll discuss in more detail later.
TVL: The total value of assets locked in the pool. Higher TVL generally indicates better resistance to price slippage and larger transaction capacity.
Total Volume: The total trading volume for the token pair. Higher volume suggests greater demand.
Smart Pools: The number of available pools for the pair.
Fee APR: The highest annual percentage rate offered by the pool.
While high APRs may be appealing, it's essential to assess the pool's trading volume and TVL. A pool with a high APR but low volume or TVL might not be the most suitable choice. Always conduct thorough research before making a deposit.
Other things to keep in mind
Understanding the Smart Pool’s table is just the beginning. After selecting a token pair with multiple pools, you'll need to choose a specific pool for your deposit. Consider factors such as TVL. For instance, the sFLR/JOULE pair offers several pools with distinct characteristics, as illustrated below:
A pair may also have hidden vaults, which means they have less than $50 in TVL, so Steer hides them by default.
Once you click a vault from the list, you’ll be redirected to that vault’s page.
The vault page provides essential information for informed decision-making, including key metrics like APR, TVL, earned fees, and the next execution time. Additionally, pay close attention to the Rewards box, which highlights not only the APR but also the specific token you'll receive as a reward for staking in this pool.
Depositing
Once you've thoroughly reviewed the vault details, proceed to the deposit box and enter the desired amount of one of the tokens in the vault's pair. Steer will automatically calculate the corresponding amount for the other token based on the asset ratio defined in the strategy, which you can find below the liquidity graph.
After clicking Deposit, you'll need to review and accept Steer's terms of use before confirming the transaction on your wallet.
Closing words
Steer is known for its high APRs and wide acceptance of Flare network tokens, making it a popular choice among holders of sFLR and other tokens. However, it's important to understand the inherent risks associated with this complex platform before depositing. While this guide aims to provide clarity, it’s essential to do your own research.