Balanced vs. Single-Sided Liquidity Provision on STONfi.
When depositing assets into a DEX liquidity pool, most DeFi users know the classic rule: you must deposit equal values of two tokens (a 50/50 balanced deposit).
However, STONfi also offers Single-Sided Liquidity Provision. But how does single-sided LP actually work under the hood?
Here is a practical breakdown of both methods:
1️⃣ Balanced Provision (Standard 50/50)
In a standard deposit, you supply equal USD values of both assets, for example, $50 worth of STON and $50 worth of TON. Because your deposit matches the pool's required ratio, 100% of your capital enters the pool directly without internal conversions or extra price impact.
2️⃣ Single-Sided Provision (Automated Convenience)
What if you only hold TON, but want to provide liquidity to the STON/TON pool without manually swapping half of your tokens first?
When you choose Single-Sided Deposit, STONfi automatically performs an internal swap under the hood. It converts approximately 50% of your single asset into the paired token, balances the ratio, and adds the combined assets to the liquidity pool in a single transaction flow.
⚠️ What to Watch Before Confirming Single-Sided LP:
Because half of your deposit undergoes an automated swap, that internal trade is subject to standard DEX price impact and network fees. If the liquidity pool is shallow, single-sided provision can incur higher initial price impact than a manual balanced deposit. Always review the transaction preview before signing!
To deepen your understanding of AMM mechanics and liquidity pool structures, explore:
https://whatisdex.com/
$CNPY $BTC #BTC Price Analysis# #Macro Insights# #Altcoin Season#
When depositing assets into a DEX liquidity pool, most DeFi users know the classic rule: you must deposit equal values of two tokens (a 50/50 balanced deposit).
However, STONfi also offers Single-Sided Liquidity Provision. But how does single-sided LP actually work under the hood?
Here is a practical breakdown of both methods:
1️⃣ Balanced Provision (Standard 50/50)
In a standard deposit, you supply equal USD values of both assets, for example, $50 worth of STON and $50 worth of TON. Because your deposit matches the pool's required ratio, 100% of your capital enters the pool directly without internal conversions or extra price impact.
2️⃣ Single-Sided Provision (Automated Convenience)
What if you only hold TON, but want to provide liquidity to the STON/TON pool without manually swapping half of your tokens first?
When you choose Single-Sided Deposit, STONfi automatically performs an internal swap under the hood. It converts approximately 50% of your single asset into the paired token, balances the ratio, and adds the combined assets to the liquidity pool in a single transaction flow.
⚠️ What to Watch Before Confirming Single-Sided LP:
Because half of your deposit undergoes an automated swap, that internal trade is subject to standard DEX price impact and network fees. If the liquidity pool is shallow, single-sided provision can incur higher initial price impact than a manual balanced deposit. Always review the transaction preview before signing!
To deepen your understanding of AMM mechanics and liquidity pool structures, explore:
https://whatisdex.com/
$CNPY $BTC #BTC Price Analysis# #Macro Insights# #Altcoin Season#