I think everyone has some $TON and $USDT sitting in a wallet or on an exchange, which isn’t very profitable — so you probably want to put them to work🙂⛏️.
On the DEX STON.fi, there’s a TON/USDT pool with 14% APR, and here’s why I think holding liquidity there is a good idea🙃👇.
As we know, the only real drawback of pools is impermanent loss📉, which happens when the price changes from the moment you added liquidity.
In short👇:
2x price change → 5.72% loss
3x price change → 13.4% loss
4x price change → 20% loss
Put simply, if TON doubles or halves, you lose 5.72%. If it triples, you lose 13.4%.
Right now, the pool’s APR covers impermanent loss even if TON grows 3x🚀. Plus, don’t forget that impermanent loss doesn’t factor in the trading fees you earn while providing liquidity — and the portion of those fees in TON will also grow if TON’s price rises📈. This means the APR could go from 14% to about 21%, turning that 13.4% loss into a net +7% profit.
You can also reinvest your liquidity monthly📊, which would boost that 21% to around 23%. That way, with a -13.4% impermanent loss, you’d still end up with a net profit of about +9.6%.
So, if you’re a TON believer❤️🔥, the TON/USDT pool on STONfi might be a perfect fit for you.
If you don’t know how to provide liquidity, watch my video. I also recommend reading this article to fully dive into liquidity provision.
