STON.fi: Automated Market Making Powered by TON!

In the world of DeFi, the STON.fi platform holds a special place due to its deep integration into the TON ecosystem, where one of the key features that makes the platform so efficient and user-friendly is automated market making (AMM) — a mechanism that enables seamless trading of crypto assets without the need for a centralized order.

What is AMM?

Automated market maker (AMM) is an algorithm used by decentralized exchanges (DEX) that allows users to trade crypto assets directly with each other, without the need for traditional order books.

Instead, AMM uses special liquidity pools where users can deposit their tokens and earn commissions from each trade.

How is AMM implemented on STON.fi?

STON.fi uses an improved version of the classic AMM, based on the constant product formula (x \* y = k), popularized by Uniswap, but adapted to the specifics of TON:

Liquidity on TON: users contribute liquidity to token pools, such as TON/USDT. In return, they receive LP tokens that reflect their share in the pool.
Instant exchange: thanks to the AMM approach, transactions are executed instantly - users simply exchange one token for another at an algorithmically calculated price.
Transparent fees: all fees are known in advance and are divided between liquidity providers proportionally to their contribution.

Advantages of AMM on STON.fi:

Decentralization: all transactions occur on the TON blockchain, without intermediaries.
High speed and low fees: thanks to the high throughput of TON, exchanges are fast and almost cost-free.

Availability of passive income: token holders can earn on fees without participating in active trading.