As someone who has dabbled in DeFi for a while, I’ve always been drawn to liquidity farming. The potential for passive income was exciting, but my journey came with a steep learning curve , most notably, impermanent loss (IL).
My Early Struggles with Impermanent Loss
For those unfamiliar, impermanent loss happens when the value of the tokens you’ve provided as liquidity changes relative to when you deposited them. When prices fluctuate significantly, the loss can often outweigh the rewards you’re earning.
I vividly remember staking LP tokens in one popular farm, only to see my profits evaporate as the price of one token surged. Instead of celebrating gains, I was left calculating my “losses” compared to just holding the tokens.
This experience made me hesitant to fully commit to liquidity farming again. I felt like I was caught between wanting to earn rewards and fearing price volatility.
Enter #STON.fi Impermanent Loss Protection
When I discovered STON.fi, I was intrigued by their impermanent loss protection feature. The idea of farming with minimized risks was exactly what I needed to regain confidence in DeFi. Here’s how it changed the game for me:
1. Peace of Mind
STON.fi offers a layer of protection that cushions the impact of price volatility. Even in unpredictable market conditions, I felt more secure knowing that my potential losses were mitigated.
2. Fair Compensation
Instead of sacrificing my gains to impermanent loss, the platform compensates users for IL, ensuring that farming remains profitable and sustainable over time.
3. Transparent Mechanism
The process is straightforward: as long as I farm on STON.fi for the required duration, I’m eligible for compensation. It’s reassuring to see a platform that genuinely values its users and their assets.
How It Worked for Me
I started by staking in the STON/USDt farm, cautiously testing the waters with a smaller share. Over time, I became more confident and increased my investment. Thanks to their impermanent loss protection, I no longer had to monitor the market obsessively or worry about drastic price swings.
Fast forward to today, and STON.fi has become a core part of my DeFi strategy. I can farm confidently, knowing that I’m maximizing rewards while minimizing risk.
How to Start Farming on STON.fi
Step 1: Connect Your Wallet
• Visit STON.fi
• Click the Connect Wallet button in the top right corner.
• Choose your preferred wallet (e.g., Tonkeeper, Tonhub ).
Step 2: Add Liquidity
• Navigate to the Liquidity tab on the platform.
• Select the STON/USDt V2 pair.
• Deposit an equal value of STON and USDt tokens to create LP (liquidity provider) tokens.
• Note: If you don’t already have STON tokens, you can swap other tokens for STON directly on the platform.
Step 3: Stake LP Tokens in the Pool
Go to the Pools tab.
• Select the STON/USDt V2 farm.
• Click Stake and input the number of LP tokens you wish to stake.
Step 4: Monitor and Claim Rewards
Once staked, your LP tokens will begin earning STON rewards immediately.
• You can monitor your earnings in real time and claim rewards at any time without locking up your LP tokens.
Step 5: Enjoy Impermanent Loss Protection
• To qualify for STON.fi’s Impermanent Loss Protection, ensure you keep your LP tokens staked for the required duration. This feature compensates you for any IL incurred during farming, making it a safer and more sustainable way to earn.
Why STON.fi is Ideal for Beginners
• No LP Token Lock-Up: You have the flexibility to unstake and withdraw at any time.
• Transparent Protection: Their IL protection system clearly outlines the compensation process.
• Simple Interface: The platform is intuitive, making it perfect for both beginners and experienced DeFi users.
Whether you’re just starting your DeFi journey or looking for a smarter way to farm, STON.fi’s approach to impermanent loss protection ensures you can earn confidently without worrying about market volatility.
Start Farming with STON.fi Today and take control of your #DEFİ rewards.