Hello my good people, compliment of the season from here 👋.
So in this article I’ll be sharing an eye opening development that just recently got integrated in the TON ecosystem by one of it top industry Dex aggregator, STON.fi – DEX for TON blockchain
If this your first time hearing about impermanent loss below is the link to explore more about Impermanent loss where you will learn how it effects your assets in both positive and negative ways.
★★ Impermanent loss | STON.fi: The Ultimate Guide
This text is recommended for advanced STON.fi users.
https://guide.ston.fi/en/impermanent-loss
Now let get to find out what impermanent loss Protection features is , and what it’s dose for liquidity providers.
IMPERMANENT LOSS PROTECTION
The impermanent Loss Protection is a feature that is designed by the STON.fi – DEX for TON blockchain team to enhance the liquidity provision experience by mitigating the amount of price fluctuations of the assets used in providing liquidity in the STON/USDT V2 pool.
Note 📢
Mind you, this feature is only available for liquidity providers utilizing the ston/usdt V2 pools and its time sensitive.
So, what happens if liquidity providers do not adopt STON.fi – DEX for TON blockchain’s impermanent loss protection feature?🤔
Here are certain risk i feel liquidity providers might incure for themselves without the help of the impermanent loss protection.
Possible depreciation in asset value
Liquidity providers [LPs] may experience financial losses if the prices of the tokens they’ve used in joining a specific pool fluctuate significantly. i believe with such experiences, an individual can be discouraged from providing liquidity.
So, to prevent this from happening, I’d advise you to join the STON/USDT V2 pool on STON.fi – DEX for TON blockchain which has the impermanent loss protective feature for your assets.
Also, another risk involved is the market volatility risk. lets get to know how the market volatility posses as a risk without the impermanent loss protective feature.
Market Volatility Risk
If you’ve been observant, you’d notice that in times of high market volatility, the risk of impermanent loss increases because high volatility equals high fluctuations in pricings of an asset. And as a result, Liquidity providers may withdraw their funds to avoid depreciation in value of their assets, leading to reduced liquidity and increased price slippage for traders.
Impermanent loss has been a longstanding challenge for LPs in DeFi. the implementation of this protective mechanism has given me more reason to join pools and farming activities on STON.fi – DEX for TON blockchain
Why i think STON.fi – DEX for TON blockchain’s impermanent loss protective feature offers a great opportunity for liquidity providers(LPs) right now!
Increased participation in TON DeFi Activities:
Personally, i feel like the offering of this protective measure against impermanent loss will encourage more users to participate in liquidity provision which will lead to increased liquidity because with the promised offset percentage of 5.72% which is equivalent to the 50% decrease in price of LPs asset, more LPs will be motivated to join Liquidity provision activities and trust me, this wont be the time for you to miss out on liquidity provision and farming activities on STON.fi – DEX for TON blockchain
Market stability for LPs
I also think that by mitigating the risks associated with impermanent loss within these promised period, STON.fi – DEX for TON blockchain has in a way contributed to a more stable and resilient DeFi opportunities for LPs which is essential for the sustainable growth of decentralized finance.
how long will this last?🤔
📢This opportunity will be open until January 31st 2025, 23:59 UTC. so jump in now while you still can!
For more details on this protective feature, join the STON/USDT V2 pool using the link below 👇
STON/TON V2 POOL >
STON.fi
https://app.ston.fi/pools/EQBbsMjyLRj-xJE4eqMbtgABvPq34TF_hwiAGEAUGUb5sNGO
New to liquidity provision and farming activities?
here’s a link guide that will walk you through on how you can provide liquidity and also farm on the STON.fi – DEX for TON blockchain dex👇
HOW TO PROVIDE LIQUIDITY >
★ How to provide liquidity on STON.fi | STON.fi: The Ultimate Guide
Text with one star ★ is recommended for experienced users. If you need a guide to basic operations on DEX, study this encyclopedia from the beginning.
https://guide.ston.fi/en/how-to-provide-liquidity-on-ston.fi
HOW TO FARM >
★ How to farm on STON.fi | STON.fi: The Ultimate Guide
Text with one star ★ is recommended for experienced users. If you need a guide to basic operations on DEX, study this encyclopedia from the beginning.
https://guide.ston.fi/en/how-to-farm-on-ston.fi
Helpful Resources
STON.fi – DEX for TON blockchain Dex data on DeFi Lama :
STON.fi – DEX for TON blockchain total value locked (TVL) is around $120M (see more on DeFi Lama) >
https://defillama.com/protocol/ston.fi?volume=false
TON Protocol stats:
TON Network stats including total transactions, performance, total fee etc. can be found on TON stat >
TON Stat
Every day updates of TON Network statistics, including total transactions, performance, total fees and etc.
https://www.tonstat.com/
STON.fi – DEX for TON blockchain Market On Dex Screener:
You can find stonfi on Dex Screener to see stonfi liquidity pool and trading pair. >
https://dexscreener.com/ton/stonfi
About STONFI
STON.fi – DEX for TON blockchain is a decentralized exchange (DEX) that uses an Automated Market Maker (AMM) model. In simple terms, it is a platform where users can trade digital assets directly with each other without needing a third party to facilitate the transactions.
For more information about STONFI below is their official links.
Website : STON.fi – DEX for TON blockchain
Blog : https://blog.stonfi
Telegram: t.me/stonfidex