How #STON.fi Keeps Liquidity Stable on the $TON Blockchain

Liquidity pools are the backbone of any DEX, enabling seamless swaps. Liquidity providers deposit their assets, earning a share of the trading fees. However, when the ratio of Total Value Locked (TVL) to trading volume is too low, it leads to high volatility, making the pair unstable.

This is a common issue on the $TON blockchain, where many tokens only gain traction during major events. As a result, TVL often decreases over time due to reduced APR, discouraging liquidity providers from staying in the pool.

To combat this, #STON.fi —the main DEX of $TON introduced farming concessions with $STON and $GEMSTON rewards. This system ensures a steady daily distribution of rewards to LPs, keeping APR attractive and liquidity stable.

A prime example is the /TON pair on @ston_fi. Despite a daily volume of just $1.07K, its TVL exceeds $458.42K, thanks to farming support with an impressive 573% APR. Similarly, the $JETTON/USDT pool has maintained APRs between 30-60% for over six months, keeping liquidity providers engaged.

But that’s not the only innovation. To further enhance liquidity, #STON.fi introduced Impermanent Loss-Offset for the $STON/USDT pair, mitigating impermanent loss risks. Combined with a 30% farming APR, this has successfully attracted over $2 million in TVL.