In this article, I’ll explain the impermanent loss protection implemented by STON.fi for the STON/USDT V2 pool. We’ll also dive into the pool’s specifics and explore the associated farm.

When Do Providers Face Impermanent Loss?

Let’s break it down! Impermanent loss arises when the price ratio of tokens in a liquidity pool changes significantly, potentially leading to losses for liquidity providers.

What Protection Terms Does STON.fi Offer?

STON.fi has launched a special initiative to safeguard against such losses:

Protection up to a 50% price drop (equivalent to a 5.72% loss).
Monthly user budget: Up to $100 (in STON tokens).
Total budget: $10,000.
Compensation paid automatically.
To participate: Provide liquidity before January 1.
Protection period: Until January 31.

This applies exclusively to the STON/USDT pool. Full terms are available via the link.

Pool Yield and Liquidity Provision Guide

The STON/USDT pool stands out as one of the best. Pairing the exchange’s native token with a strong fundamental base and a stablecoin — what could be better?

Farm details:

Farming rewards: 10,000 STON (~$45,000).
Farming deadline: January 25.
APR: ~42%.

Follow these steps to add liquidity:

Go to the STON/USDt V2 pair via this link. You’ll see the following liquidity provision interface:

2. Connect your wallet: It must be a non-custodial wallet. For instance, I use Tonkeeper:

After connecting, enter the desired amount of tokens to supply liquidity and confirm the transaction in your wallet.

Important: Both tokens in the pair must be supplied in equal 1:1 ratio based on their dollar value. For example, if you’re adding $300 worth of STON, you also need to add $300 worth of USDt.

Once you’ve provided liquidity, don’t forget to send your LP tokens to farming! Otherwise, you’ll only earn rewards based on the pool’s APR. In this farm, LP tokens are not locked, so you can withdraw your funds anytime you like.

Conclusion

The STON/USDT pool with impermanent loss protection might be the best opportunity to try farming. Additionally, you might even earn extra profit if the token’s value increases.