What actually determines how much a liquidity provider earns on a DEX?
STON.fi's own documentation breaks it down plainly. Every trade through a pool pays a 0.2% fee, and that fee is split among liquidity providers strictly by their share of the pool. Provide half the liquidity in a pair, and you collect half of that 0.2% on every trade running through it. Provide a smaller share, and your cut shrinks proportionally.
This means the size of your position relative to everyone else in that specific pool matters more than the absolute amount you deposit. Contributing to a small, thinly provided pool can earn a larger proportional share of fees than contributing the same amount to a deep, heavily provided one, though a deeper pool typically sees more trading volume overall, which changes the actual dollar return either way.
There's a real requirement most people underestimate before joining: liquidity has to be provided on both sides of a pair, in the right proportion, not just deposited as one token you already hold. That means acquiring both assets first, and picking a pool where the depth and volume actually match your goals.
$TON continues to be worth watching for anyone comparing how fee sharing structures like this compare across other chains' leading DEXs.
Guide: https://guide.ston.fi/liquidity-pools-types
Ston.fi: https://ston.fi/
#TON #defi #STONfi $GRAM
STON.fi's own documentation breaks it down plainly. Every trade through a pool pays a 0.2% fee, and that fee is split among liquidity providers strictly by their share of the pool. Provide half the liquidity in a pair, and you collect half of that 0.2% on every trade running through it. Provide a smaller share, and your cut shrinks proportionally.
This means the size of your position relative to everyone else in that specific pool matters more than the absolute amount you deposit. Contributing to a small, thinly provided pool can earn a larger proportional share of fees than contributing the same amount to a deep, heavily provided one, though a deeper pool typically sees more trading volume overall, which changes the actual dollar return either way.
There's a real requirement most people underestimate before joining: liquidity has to be provided on both sides of a pair, in the right proportion, not just deposited as one token you already hold. That means acquiring both assets first, and picking a pool where the depth and volume actually match your goals.
$TON continues to be worth watching for anyone comparing how fee sharing structures like this compare across other chains' leading DEXs.
Guide: https://guide.ston.fi/liquidity-pools-types
Ston.fi: https://ston.fi/
#TON #defi #STONfi $GRAM