A Step-by-Step Guide to Using Impermanent Loss Protection on #STON.fi
As someone who enjoys using STON.fi for all my crypto transactions, I’ve always appreciated its user-friendly interface and innovative features. Recently, I explored their Impermanent Loss Protection feature, designed specifically for the STON/USDT V2 pool, and it’s been a game-changer for managing risks in liquidity provision.
If you’re curious about how to make the most of this feature, here’s a simple guide to help you get started.
What Is Impermanent Loss Protection?
Impermanent loss happens when token prices in a liquidity pool fluctuate, leading to potential losses compared to holding the tokens outright. With STON.fi's new protection, you can offset up to 5.72% of these losses, giving you more confidence as a liquidity provider.
How to Use Impermanent Loss Protection
Step 1: Head to STON.fi
Visit the STON.fi website. Make sure your crypto wallet is connected and has enough STON and USDT tokens.
Step 2: Add Liquidity to the STON/USDT V2 Pool
1. Go to the Liquidity Pools section.
2. Select the STON/USDT V2 pool.
3. Provide your tokens in the required ratios.
Once you’ve added liquidity, your position is automatically eligible for Impermanent Loss Protection.
Step 3: Let the System Work for You
STON.fi handles everything behind the scenes:
If STON's price drops during the program period, you’ll receive an offset of up to 5.72% of your impermanent loss.
Rewards (up to $100 in STON tokens per user) are credited to your wallet automatically—no claims needed!
Tips for Maximizing Benefits
Provide liquidity early during the program to ensure eligibility.
Keep an eye on the $STON token’s performance.
Remember, this is a discretionary program, not a guaranteed solution for all losses.