Impermanent loss protection by STON.fi
Explore the first all-in-one DeFi hub on the TON blockchain with a built-in mechanism to help mitigate the impact of impermanent loss. Swap, stake, and provide liquidity with additional safeguards designed to support long-term participation in DeFi
STON.fi introduces an impermanent loss protection mechanism, setting a new standard in decentralized finance. As the first DEX in the entire DeFi ecosystem to implement such a feature, we aim to provide an added layer of stability for liquidity providers.
A new approach to liquidity provision
Important details
Protection covers impermanent loss up to 5.72%
Monthly payout pool is capped at $10,000
Based on the participant’s minimum liquidity during the month
Max payout per participant: $100 (paid in STON tokens)
Automatic crediting — no claims needed!
This feature is designed to offer liquidity providers additional coverage, making participation in DeFi more accessible
Impermanent loss occurs when token price ratios shift after funds have been deposited into a liquidity pool. While it is a known risk in DeFi, different strategies exist to manage its impact.
Understanding impermanent loss
Check out our guide to learn more about impermanent loss!
You can even calculate it yourself with this impermanent loss calculator!
Join a growing community of liquidity providers on STON.fi who utilize tools designed to help navigate the risks of decentralized finance.
Liquidity provision with added protection
FAQ
Impermanent loss occurs when the price of assets in a liquidity pool changes compared to when you first provided liquidity. This price movement can result in a temporary loss in value compared to simply holding the assets in your wallet.
The impermanent loss protection feature allows liquidity providers to partially offset impermanent loss up to 5.72%, corresponding to a maximum 50% drop in the price of STON. If STON falls more than 50%, the offset remains capped at 5.72%.
To be eligible, you must provide liquidity in the USDT/STON v2 pool before the start of each validity period, which is announced separately but generally begins on the first day of the month. The payout amount is based on the participant’s minimum liquidity during the month.
You can offset impermanent loss up to 5.72%, which corresponds to a maximum 50% drop in the price of STON. The maximum payout per participant is $ 100 (paid in STON tokens), with a total monthly cap of $ 10,000.
Payouts are automatically distributed in STON tokens within 15 days after the end of the validity period—no manual claims required!
If you partially withdraw liquidity before the month ends, you will still be eligible for a payout. However, the payout amount will be calculated based on the minimum liquidity you maintained in the pool throughout the month.
You can read the complete terms and conditions here.
It’s worth noting that the Impermanent Loss Protection Feature is a discretionary initiative and not an insurance or similar product. It does not guarantee full reimbursement and should not be relied upon as a guarantee of returns, any form of indemnification, whether partial or full, and may be adjusted or discontinued. The feature is provided solely under and subject to the specified conditions outlined in the terms and conditions.
Instantly swap Toncoin for any coin or token at the best rate
Disclaimer: This Impermanent Loss Protection Feature is a discretionary initiative and not an insurance or similar product. It does not guarantee full reimbursement and should not be relied upon as a guarantee of returns, any form of indemnification, whether partial or full, and may be adjusted or discontinued. The feature is provided solely under and subject to the specified conditions outlined in the terms and conditions.
Nothing on this site is investment advice. All information is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our site constitutes a solicitation, recommendation, endorsement, or offer by STON.fi or any third party service provider to buy or sell any assets, digital coins and tokens, securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. Please view Terms of use for more information.
Nothing on this site is investment advice. All information is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our site constitutes a solicitation, recommendation, endorsement, or offer by STON.fi or any third party service provider to buy or sell any assets, digital coins and tokens, securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. Please view Terms of use for more information.
