liquidityprovision

Concentrated Liquidity Market Makers, commonly known as CLMMs, are an advanced version of automated market makers used in decentralized exchanges. Unlike traditional AMMs that spread liquidity evenly across all possible prices, CLMMs allow liquidity providers to concentrate their funds within specific price ranges.
This design significantly improves capital efficiency and changes how liquidity provisioning works in DeFi.
The Limitation of Traditional AMMs
Traditional AMMs distribute liquidity across an infinite price curve. While this approach is simple and permissionless, it is highly inefficient. Most trades occur within a relatively narrow price range, yet liquidity providers must allocate capital far beyond where trading actually happens.
As a result, large amounts of capital sit unused while liquidity providers still face impermanent loss.
CLMMs were created to fix this inefficiency.
How CLMMs Work
In a CLMM model, liquidity providers choose a specific price range where their liquidity will be active. Trades only use that liquidity when the market price falls within the selected range.
If the price moves outside the range, the liquidity becomes inactive and no longer earns trading fees until the price returns. This allows providers to deploy capital where it is most effective instead of spreading it thinly.
Liquidity is no longer passive by default. It becomes strategic.
Capital Efficiency and Fee Generation
Because liquidity is concentrated near the current market price, CLMMs offer deeper liquidity with less capital. This results in lower slippage for traders and higher fee earnings for active liquidity providers.
The same amount of capital can generate significantly more volume compared to traditional AMMs. However, higher efficiency also means higher responsibility for the provider.
Efficiency cuts both ways.
Risks Unique to CLMMs
CLMMs introduce new risks that passive liquidity providers often underestimate. If the price moves sharply outside the chosen range, liquidity stops earning fees. Providers may end up holding only one asset instead of a balanced pair.
Impermanent loss still exists and can be amplified if ranges are poorly chosen. Active management becomes necessary, especially in volatile markets.
If you want passive income, CLMMs will punish your laziness.
CLMMs vs Traditional AMMs
Traditional AMMs favor simplicity and passivity. CLMMs favor efficiency and control.
Traditional models suit users who want minimal management. CLMMs suit users who understand price behavior and are willing to adjust positions over time.
The upgrade improves performance but demands competence.
Where CLMMs Are Used in DeFi
CLMMs are commonly used in modern decentralized exchanges that focus on capital efficiency and professional liquidity provision. They are especially effective for stable pairs, correlated assets, and high-volume trading environments.
For volatile assets, they require constant monitoring and adjustment.
Final Thoughts
Concentrated Liquidity Market Makers represent a major improvement in how liquidity is deployed in DeFi. They reduce wasted capital and improve trading conditions, but they are not beginner-friendly.
CLMMs reward strategy and punish neglect.
If you don’t understand price ranges, volatility, and rebalancing, you should not be providing liquidity this way.
Better tools don’t make bad decisions safer.
.
Trade Some Coin $UNI $ORCA & $CAKE
.
#CLMM
#CapitalEfficiency
#LiquidityProvision
#DeFiStrategy
#YieldOptimization

Calling all junior devs and DeFi newcomers! STON.fi is hosting a hands-on workshop focused on liquidity provision—perfect for anyone eager to learn how to earn trading fees by contributing to a decentralized liquidity pool.
📅 Date: Thursday, June 19
⏰ Time: 2:00 PM – 3:00 PM UTC
The session will guide developers through setting up the STON.fi SDK, adding liquidity, and minting LP tokens using real code examples. Expect live debugging, testing strategies, and a look into how AI tools can support DeFi development workflows.
Participants are encouraged to review the basics through the Liquidity Providing Guide ahead of time. The session is beginner-friendly and includes step-by-step guidance and live Q&A.
#Stonfi #LiquidityProvision #CryptoWorkshop #DeFiEducation #DeFi

STON.fi Redefines Liquidity on TON with 30,000+ Token Pairs
You ever stumble across something in crypto that makes you pause and think, “Wait… how did I not see this coming?” That was me a few days back when I realized STON.fi just hit over 30,000 token pairs. Yeah—thirty. thousand. pairs. On a DEX. On TON.

This is the largest token selection on $TON , and here is what that massive number realistically signifies for us, the users:

1. Lower Slippage for the Long Tail: The majority of trading volume will always be in major pairs (like $TON /$USDT). However, for the hundreds of smaller, emerging projects—the backbone of a growing ecosystem—having a deep pool, even of a smaller size, is critical. 30,000+ pairs means less likely to suffer massive price impact when swapping a smaller-cap token. This deep, granular liquidity is essential for new projects to launch and gain market access without being immediately crushed by high slippage.

2. Ecosystem-Wide Confidence and Adoption: A DEX doesn't conjure 30,000 pairs out of thin air; it comes from projects, developers, and liquidity providers (LPs) actively creating those pools. This metric is a powerful signal that the TON ecosystem is rapidly expanding and decentralizing. It shows builders have faith in STON.fi's infrastructure (which is audited and known for low fees) to handle their token economics.

3. The Telegram Bridge Effect: The TON blockchain's primary strength is its tight integration with Telegram's massive user base. A diverse selection of pairs on STON.fi means that the millions of potential Web2 users converting to Web3 via Telegram now have a comprehensive, functional financial market ready for them. It’s a vital piece of the puzzle: mass adoption needs a liquid market.

While the number is huge, here are my realistic thoughts on what this means for LPs and traders:

✓ The Opportunity (As a Trader): The sheer volume of pairs, powered by STON.fi's Omniston aggregation, means I'm much more likely to get the best possible rate on a swap across the network. For traders, this is a liquidity powerhouse.

✓ The Reality (As an LP): Not all 30,000 pairs will be profitable or even active. The core farming/LP opportunities will still be in the high-volume, well-incentivized pools. However, this vastness opens up niche, potentially high-APR opportunities in less-trafficked, early-stage project pools—though this comes with the higher risk of impermanent loss (IL) and the volatility of new assets. This is for the experienced, risk-on LP.

STON.fi: The platform has been a pioneer in TON DeFi, offering excellent features like near-zero fees and seamless TON wallet integration. Hitting this pair count solidifies its position as the DeFi hub of TON. The critical next step is maintaining quality and deepening liquidity in the key pools, not just increasing the count. But for the rapid growth phase, this is exactly what the ecosystem needed.
$BTC $ETH #STONfi #LiquidityProvision #TON #Seamless #DeFi