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#liqulidiy

liqulidiy

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#You click “Swap.” But where does the liquidity come from? The answer is simple: Liquidity Pools. A liquidity pool is a smart contract holding a pair of tokens that traders can swap against without needing a traditional order book. The basic flow: Liquidity Providers ↓ TON + USDT Pool ↓ Traders swap ↓ Pool balances change ↓ Swap fees accrue to LPs STON.fi uses an AMM model where pool balances help determine swap pricing. For classic constant-product pools: x × y = k When a trader swaps one token for another, the pool ratio changes, which affects the price. That is why liquidity depth matters. A deeper pool can generally handle larger trades with less price impact than a shallow pool. But providing liquidity is not simply “deposit and earn.” Liquidity providers also face risks such as impermanent loss and token price volatility, while APR can change with market activity. Part 3: Understand the pool before you understand the yield. Next: How Cross-Chain Swaps Actually Work. #TON #DeFi #STONfi STON.fi — DeFi liquidity protocol on the TON blockchain 💎 | Website: https://ston.fi #STONfi #liqulidiy pool #swap
#You click “Swap.” But where does the liquidity come from?

The answer is simple:

Liquidity Pools.

A liquidity pool is a smart contract holding a pair of tokens that traders can swap against without needing a traditional order book.

The basic flow:

Liquidity Providers
↓
TON + USDT Pool
↓
Traders swap
↓
Pool balances change
↓
Swap fees accrue to LPs

STON.fi uses an AMM model where pool balances help determine swap pricing.

For classic constant-product pools:

x × y = k

When a trader swaps one token for another, the pool ratio changes, which affects the price.

That is why liquidity depth matters.

A deeper pool can generally handle larger trades with less price impact than a shallow pool.

But providing liquidity is not simply “deposit and earn.”

Liquidity providers also face risks such as impermanent loss and token price volatility, while APR can change with market activity.

Part 3: Understand the pool before you understand the yield.

Next: How Cross-Chain Swaps Actually Work.

#TON #DeFi #STONfi

STON.fi — DeFi liquidity protocol on the TON blockchain 💎 | Website: https://ston.fi

#STONfi #liqulidiy pool #swap
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