What are the benefits of providing liquidity on STON.fi?

Providing liquidity on STON.fi allows users to earn passive benefits. When you deposit tokens into a pool, you receive a share of the swapping fees. Every time someone swaps tokens using your pool, a small percentage of the fee goes to liquidity providers. Over time, this can add up to a meaningful reward, especially if the pool is active. Another benefit is that it supports the ecosystem by ensuring swaps can happen smoothly. Liquidity providers also receive LP tokens, which can sometimes be used in farming programs for extra rewards. However, there are risks, such as impermanent loss, which means the value of your tokens can change compared to holding them separately. Despite the risks, many users find liquidity provision attractive because it combines earning potential with contributing to DeFi growth. On STON.fi, it’s especially appealing because TON fees are so low.

Was this article helpful?
0

Still have questions? Get in touch

Comments (0)

Please sign in to leave a comment.

Powered by Zendesk