November 30, 2024

Farming Coins on STON.fi — The Best Way to Start

A Bit of Theory

Hello! Today, I’ll explain in detail how to contribute funds to liquidity pools on the cutting-edge DEX of the TON blockchain — STON.fi.

In simple terms, a liquidity pool is like a reservoir where users deposit their assets so the exchange can function. In return, the exchange shares part of its fees with liquidity providers.

A Little Math

To estimate the profitability of a pool, you need to pay attention to the APR — the annual percentage yield expressed as a percentage.

Today, we’ll focus on the STON/USDt pair, which offers the following conditions:

  • Farming rewards: 10,000 STON (~$50,000)
  • Farming deadline: December 26

This is the pair we’ll discuss today, as it has an attractive farming pool with substantial rewards.

How to Add Liquidity

Follow these steps to add liquidity:

  1. 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 is an excellent opportunity to try farming. I specifically selected a pair with the best conditions for this article. Additionally, you might even earn extra profit if the token’s value increases.