The STON/USDT Pool is Now Protected Against Impermanent Loss: How Does It Work?

The STON.fi exchange has introduced an updated top-tier farm for STON/USDT, featuring rewards worth $46,000. Alongside this, it now includes a unique impermanent loss protection feature, making it a true win-win offer for liquidity providers. Let’s dive into how this works!

Impermanent Loss Protection: What Is It and How Does It Work?

One of the main challenges of providing liquidity in DeFi is impermanent loss, which occurs when the price ratio of assets in a pool shifts significantly.

STON.fi has introduced a special program for compensating impermanent loss, which will be active until January 31, 2024 (at least, because it has already been extended by one month). Here are the key terms of the program:

Maximum monthly budget: $10,000.
Individual compensation limit: $100 (paid in STON tokens).
Automatic payouts: No additional actions required from participants.
Eligibility: Only users who provide liquidity before January 1 can participate.
Applies exclusively to the STON/USDT V2 pool.

About the STON/USDT Pool

STON, as the native token of the top DEX on TON, is already an attractive investment option. Providing liquidity to the STON/USDT V2 farm is an even better way to maximize your returns. Let’s take a closer look at what the farm offers:

Rewards: 10,000 STON (~$46,000).
Farming period: Until January 25, 2024.
No LP token locking required.

This setup offers an annual yield of around 40%, loss protection, and a potential market and STON token price pump in the near future.

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