Why are my rewards for liquidity provision lower than I expected

Liquidity provider rewards depend on the swapping volume in the pool and the volatility of token prices. When token prices fluctuate significantly, you may experience impermanent loss — a temporary reduction in the total value of your assets compared to simply holding them. If swap activity is low, fewer fees are collected, which results in lower returns. LP benefit is variable and directly tied to overall market conditions and user activity.

Stable pairs with consistent swap volume usually provide more predictable yields, while volatile pairs can generate higher returns but come with greater risk. Over time, the rewards earned from swap fees can offset small fluctuations in token prices. It’s recommended to monitor pool performance and market trends regularly to decide when to add or remove liquidity. On STON.fi, all fee distributions are automatic and fully transparent — your earnings are calculated directly by smart contracts on the TON blockchain.

Impermanent loss calculator