Introducing Impermanent Loss Protection: A Revolution for DeFi
We are excited to announce a game-changing innovation in the DeFi landscape on the TON blockchain. Impermanent Loss Protection is an innovative feature designed to help liquidity providers mitigate potential losses due to token price fluctuations.
The Problem: Impermanent Loss
Impermanent loss occurs when the price of tokens in a liquidity pool changes, potentially causing a loss for liquidity providers. This can be a significant risk, especially in volatile markets.
Our Solution: Impermanent Loss Protection
Our innovative feature is designed to help offset some of these losses, giving liquidity providers increased confidence in their investments. Here’s how it works:
We allocate a monthly budget of $10,000,$ to support Impermanent Loss Protection. This budget will be used to compensate for losses of up to 5.72% (corresponding to a 50% drop in the asset price). The maximum compensation amount per user is $100, paid in STON tokens.
Key Benefits
- Improved liquidity provision experience
- Increased confidence in investments
- Ability to mitigate losses due to token price fluctuations
Get Started
Provide liquidity on and enjoy Impermanent Loss Protection. This feature is available exclusively for the STON/USDT V2 pool.
Important Notes
- This is a discretionary program, not an insurance product.
- It does not guarantee a full refund or returns.
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