How STON.fi Pool Works 🔧
STON.fi is the largest decentralized exchange (DEX) on the TON blockchain. It allows users to swap tokens directly from
their wallets without registration, and to provide liquidity to earn trading fees. The TON/FRT pool on STON.fi is the
primary on-chain market for FRT — every swap there directly affects the FRT price. This guide explains how liquidity
pools work, what to expect when adding or withdrawing liquidity, and the risks involved.
🎯 What Is a Liquidity Pool?
A liquidity pool is a smart contract that holds two tokens (e.g., TON and FRT) and allows anyone to swap between them
automatically. Instead of matching buyers with sellers (like a traditional exchange), liquidity pools use a mathematical
formula to set prices.
- 🔗 Fully on-chain — no central operator, no order book
- ⚡ Always available — swaps happen 24/7 instantly
- 👥 Community-funded — anyone can add liquidity and earn fees
- 📐 Algorithmic pricing — prices are determined by token ratio, not by orders
📐 How Pool Pricing Works
Liquidity pools use a formula called the constant product:
x × y = k
Where:
- x — amount of token A in the pool (e.g., TON)
- y — amount of token B in the pool (e.g., FRT)
- k — a constant that doesn't change
Every swap shifts the ratio of x and y, which automatically adjusts the price. The bigger the pool, the smaller the
price impact per trade.
💧 Adding Liquidity to a Pool
When you add liquidity, you deposit equal value of both tokens into the pool. In return, you receive LP (liquidity
provider) tokens that represent your share of the pool.
1. Open app.ston.fi and connect your Tonkeeper wallet
2. Navigate to the Pools section
3. Find the TON/FRT pool (or any other pair)
4. Click Add Liquidity
5. Enter the amount of one token — the other token amount auto-calculates based on current ratio
6. Confirm the transaction in Tonkeeper
7. In return, you'll receive LP tokens. Holding LP tokens lets you withdraw your share + accumulated fees at any time.
⚠️ You must deposit equal value of both tokens. If you only have TON, swap half for FRT first.
💰 How Liquidity Providers Earn
**Every swap on **STON.fi charges a small fee (typically ~0.3% per trade). These fees are added to the pool, increasing
its total value. When you withdraw your liquidity, you receive your share of the larger pool — including accumulated
fees.
- 🪙 Trading fees — earned proportionally to your pool share
- 📈 No staking required — just hold LP tokens
- 🔓 Withdraw anytime — no lock-up periods on most pools
- 👥 More activity = more fees — high-volume pools earn more
⚠️ Impermanent Loss Explained
Impermanent loss is the most important risk when providing liquidity. It happens when the price of one token in the pool
changes relative to the other.
Example: You deposit 1 ETH + $2,000 USDT (ETH price = $2,000) into a pool.
- ETH price doubles to $4,000
- The pool rebalances automatically due to swaps
- When you withdraw, you might receive ~0.7 ETH + $2,800 USDT
- Total value at withdrawal: $2,800 + $2,800 = $5,600
- But if you had just held: 1 ETH + $2,000 = $4,000 + $2,000 = $6,000
- Difference: $400 less than just holding (this is impermanent loss)
⚠️ Impermanent loss is "impermanent" only if prices return to their original ratio. If they don't, the loss is realized
when you withdraw.
🔄 Withdrawing Liquidity
When you withdraw, you burn your LP tokens and receive your share of the pool. The amounts of each token you get back
depend on the current pool ratio — not necessarily the same amounts you deposited.
1. Open app.ston.fi and go to your Pools dashboard
2. Find the pool you want to exit
3. Click Remove Liquidity
4. Choose the percentage to withdraw (25%, 50%, 75%, 100%)
5. Confirm the transaction in Tonkeeper
6. You'll receive both tokens proportionally, plus accumulated trading fees.
🎯 Should You Provide Liquidity?
Providing liquidity can earn passive income, but it's not risk-free. Consider these factors:
✅ Good for:
- Long-term believers in both tokens (TON + FRT)
- Users comfortable with DeFi risks
- Pools with high trading volume (more fees)
📚 Useful Links
- STON.fi DEX: app.ston.fi
- FRT token page: ston.fi/tokens/frt
- Pool analytics: app.ston.fi/pools
- STON.fi documentation: docs.ston.fi
⚠️ Important Disclaimer
Providing liquidity involves significant financial risks, including impermanent loss, smart contract vulnerabilities,
and token price volatility. STON.fi is a third-party decentralized exchange not operated by ForTon. Always do your own
research before depositing funds. Only provide liquidity with funds you can afford to lose. All transactions on TON are
final and irreversible.
💬 Still have questions? Start a chat with our support team.