One of the most overlooked risks in DeFi is impermanent loss.

Liquidity providers (LPs) often earn rewards by depositing token pairs into pools but when those token prices diverge, the LP can end up with less value than simply holding the assets. That’s impermanent loss. And for many, it's the hidden cost of yield farming.

But what if this risk could be mitigated? Yes is very possible. Stonfi a DEX built on the TON blockchain is doing something different. They’ve introduced a recurring impermanent loss protection mechanism for the STON/USDT pool.

Each month, a new protection cycle begins. LPs who provide liquidity before the cycle starts (i.e., before the 1st of the month) are eligible for that month’s IL protection. If the value of your position suffers due to price divergence, the protocol covers the loss under the rules of the round.

It’s not retroactive. It doesn’t apply mid-cycle. You’re either in before the deadline, or you’re not protected. That’s what makes timing critical.

The next protection round starts July 1st. Any LP who joins the STON/USDT pool on or before that date is covered for the month. This structure offers something rare in DeFi.

Confidence to deploy capital without worrying that volatility alone will erode your returns. And in a market that’s still finding its footing, mechanisms like this could redefine how liquidity provision is approached.

As capital efficiency becomes the next battleground in DeFi, reducing hidden downside not just boosting upside

might be where real innovation happens. Ston fi’s IL protection is a signal of that shift.