DeFi is a highly sophisticated system where each component serves a distinct purpose. It operates using smart contracts—self-executing code that runs on the blockchain (referred to as on-chain), while external code interacting with the blockchain is called off-chain.
At the core of DeFi lies the DEX (Decentralized Exchange), which primarily facilitates token swaps. In a swap, users send one token to a liquidity pool's smart contract and receive another in return. However, for this exchange to occur, the desired token must already be available in the pool. This is where liquidity providers (LPs) step in—they deposit their tokens into the pool to enable seamless swaps and, in return, earn a portion of the transaction fees.
By providing liquidity, LPs can get APRs. For instance, on $TON Blockchain (one of the most advanced networks) and its leading DEX, STONfi, liquidity pools offer competitive APRs. These returns are further enhanced by farming programs, where LPs receive additional fixed rewards distributed daily. Together, these mechanisms create a robust and rewarding ecosystem for participants.
For example such pairs on STONfi can generate APRs like this:
TAPS/TON >>> APR: 108%
JETTON/TON >>> APR: 49.8%
PX/USDT >>> APR: 102%
