As one of the most prominent decentralized exchanges within the TON ecosystem, STON.fi has become a preferred platform for liquidity providers, thanks to its Automated Market Maker (AMM) model and seamless integration with TON wallets. This guide delves into the complete process and advanced techniques for generating liquidity pool tokens (LP Tokens) on STON.fi.
What Is STON.fi?
STON.fi is a decentralized automated market maker platform built on the TON blockchain. It offers near-zero transaction fees and minimal slippage while integrating seamlessly with TON wallets for an enhanced user experience. Designed with Telegram users in mind, STON.fi supports millions of transactions per second, offering both high throughput and scalability. Users can perform cross-chain swaps with native tokens without needing bridges or conversions. The platform incorporates a Request for Quote (RFQ) system and Hash Time Lock Contracts (HTLCs), eliminating trading risks and reliance on third parties while ensuring security and operational efficiency.
Background of STON.fi
STON.fi was co-founded in 2022 by Viacheslav Baranov (CEO), Stanislav Bazylevich (COO), Mike Fedorov (CBO), and Andrey Fedorov (CMO). Headquartered in Dubai, UAE, the company focuses on decentralized finance (DeFi) solutions. As a private enterprise, STON.fi employs 47 professionals dedicated to delivering innovative blockchain-based services. The platform has raised $4.49 million in funding from investors including Anton Bukov, CoinFund, and Delphi Ventures. STON.fi aims to advance community-driven decentralized financial services through its native token, STON.
Introducing STON.fi V2
STON.fi is currently rolling out a series of upgrades under the banner of STON.fi V2. Central to these updates is the introduction of new types of liquidity pools.
On September 25, the AMM DEX STON.fi announced the launch of STON.fi V2 via its Telegram channel. This upgrade enhances security, stability, performance, and user interface while incorporating new functionalities.
STON.fi V2 has already introduced several key improvements:
- Upgraded Smart Contracts: The platform has deployed new smart contracts that meet modern trading requirements.
- Secure Pool Creation: Users can now create liquidity pools and add liquidity in a single operation, protecting tokens from sniper bot attacks that often target new pools.
- Referral System in SDK: Integration of STON.fi SDK now allows flexible configuration of referral commissions.
Why Choose STON.fi?
Established in 2022, STON.fi aims to create a user-friendly cryptocurrency exchange that achieves mass adoption through Telegram’s vast user base. The platform places strong emphasis on community, offering responsive support and valuing user feedback.
Thanks to TON’s sharding architecture, STON.fi can process millions of transactions per second, ensuring speed and scalability.
For those looking to issue and trade tokens on the TON blockchain, STON.fi is an excellent choice. This guide provides a step-by-step walkthrough for creating and withdrawing token liquidity—commonly referred to as adding and removing pools.
Preparations
Wallet Configuration
Recommended Wallets:
- Tonkeeper (optimal for mobile)
- OpenMask (browser extension)
- MyTonWallet (desktop version)
Security Tips:
- Download wallets only from official sources.
- Conduct small test transactions before larger operations.
- Securely record and store your mnemonic phrase.
Funding Requirements
- Mainnet TON for gas fees (recommended at least 5–10 TON).
- Token pairs for liquidity provision (of equal value).
Step-by-Step Guide to Generating LP Tokens on STON.fi
Connect Your Wallet
Navigate to the official STON.fi website and click "Connect Wallet" in the top-right corner. Select your preferred wallet (e.g., Tonkeeper) and confirm the connection via your wallet interface.
Generate Liquidity
Click "Add Liquidity" and choose the token pair you wish to use. Enter the token contract address and specify the amount you want to deposit. After verifying the details, click "Confirm" and authorize the transaction through your wallet.
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Key Considerations When Generating LP Tokens
Token Logo Visibility
If your token lacks a logo on STON.fi, you must submit a request form. Tokens require at least $10,000 in liquidity to be included in STON’s default list and display a logo.
Insufficient Balance Error
Creating a liquidity pool requires approximately 1.7 TON in gas fees. Ensure your wallet holds at least 2.7 TON to initiate the transaction.
Transaction Fees
Each trade on STON.fi incurs a 0.3% fee: 0.2% is distributed to liquidity providers, and 0.1% is allocated to the STON.fi protocol.
Fluctuating LP Token Value
LP token values change based on the ratio of assets in the pool, reflecting market conditions and impermanent loss.
Earning Visibility
Earnings are not displayed separately. Instead, they are accumulated through increases in the value of LP tokens.
Minimum Liquidity
While there is no strict minimum, very small amounts may be inefficient due to gas costs. It is advisable to provide liquidity worth at least 10 TON.
Frequently Asked Questions
How do I check my LP token balance?
You can view your LP tokens directly in your connected wallet. These tokens represent your share of the liquidity pool.
What is impermanent loss?
Impermanent loss occurs when the value of assets in a liquidity pool changes compared to holding them separately, affecting LP token value.
Can I remove liquidity anytime?
Yes, you can withdraw your liquidity at any time by burning your LP tokens and reclaiming your underlying assets.
Is STON.fi safe to use?
STON.fi utilizes advanced smart contracts and security mechanisms like HTLCs, making it a secure platform for decentralized trading.
Does STON.fi support hardware wallets?
Integration with hardware wallets depends on support from connected wallet providers like Tonkeeper or OpenMask.
How often are rewards distributed?
Rewards accumulate continuously as trading fees are added to the pool, increasing the value of your LP tokens over time.