Liquidity pools and farming on STON.fi
A bit of theory
Hi! Today I’m going to talk in detail about depositing funds into liquidity pools on the leading DEX of the TON blockchain — STON.fi.
In a nutshell what a liquidity pool is — it is, let’s say, a reservoir where users put their assets in order for the exchange to operate, for which it shares part of the commissions with liquidity providers.
A bit of maths
To estimate the profitability of the pool, we should look at the APR — the annualised return of the pool expressed as a percentage. We will study today on CATI/TON and CATI/USDT pairs, so please look at the screenshot below. APR on it is more than 999%. Why is that? The coin has just filled up, so the liquidity pool has just started to fill up and it is very profitable to invest at this moment.
These are the two pairs I’m talking about today, as farming with a reward pool of $86000 (10000 $STON) is available for them.
To provide liquidity, go to one of the pairs whose links you could see just above. Next, connect your wallet, it must be non-custodial, I for example use Tonkeeper:
After connecting the wallet go further by clicking on the button ‘Add liquidity’. There we see the following window:
We select the number of coins we want to send to the pool. Attention! In dollar equivalent both coins in a pair should be in proportion 1 to 1. Enter the desired number of coins and provide them into the pool! Do not forget to send LP-tokens to farming. You can see the correctness of the actions performed by clicking on the link below:
Deadlines for farming rewards 4 October, but for liquidity rewards you will receive before withdrawal.
Are you probably wondering if your funds will be frozen? I’ll tell you, no, you can withdraw them at any time you like.
Important links:
Additional liquidity providing guide — HERE
Guide to withdrawing funds from the pool — HERE.