How to Earn $1000 in a Liquidity Pool on STON.fi: A Detailed Example
1. Choosing a Liquidity Pool
Let’s say you choose the TON/USDT pool with an annual yield (APY) of 30%.
This pool allows you to earn fees from users swapping tokens through it.
2. Providing Liquidity
You have $500 in TON and $500 in USDT. You deposit these funds into the pool.
In return, you receive LP tokens, which represent your share in the pool.
3. Sources of Income
Trading Fees: The more users trade TON and USDT in your pool, the more fees you earn.
Farming Rewards: If STON.fi offers farming for this pool, you can stake your LP tokens and earn additional rewards in STON tokens.
4. Income Calculation
Assume the pool generates high trading activity, and you earn $20 in fees per month.
Through farming, you earn an additional $30 in STON tokens per month.
Total: $50 per month, or $600 annually.
5. Accelerating Your Earnings
Reinvest your earnings (buy more TON/USDT and add them to the pool).
Increase your pool share to earn higher fees over time.
6. Example of Reaching $1000
If APY = 30%, you’d need to invest approximately $3333 to earn $1000 in a year ($3333 * 30% = $1000).
Tip: Be mindful of impermanent loss (changes in token ratios in the pool due to price fluctuations). Ensure the risk aligns with your investment strategy.