Understanding AMMs: The Technology Behind Every STON.fi Swap
Many people use decentralized exchanges without realizing how trades actually happen behind the scenes.
Unlike traditional exchanges that rely on order books matching buyers and sellers, STON.fi uses an Automated Market Maker (AMM) model.
Here’s the basic idea.
Instead of waiting for someone to take the opposite side of your trade, users swap against liquidity pools supplied by other participants. Prices adjust automatically based on the ratio of assets inside those pools.
This approach allows trading to continue around the clock without requiring market makers to manually place buy and sell orders.
Liquidity providers contribute token pairs to these pools and may earn a share of trading fees generated by activity. However, participating also involves risks, including impermanent loss, so it’s important to understand how liquidity provision works before getting started.
AMMs have become one of the innovations that made modern DeFi possible, and STON.fi applies this model to support decentralized trading on the TON blockchain.
Have AMMs made decentralized trading easier than traditional order books, or do you still prefer conventional exchanges?
One of the biggest ideas behind cryptocurrency is ownership. But if your assets are held entirely by a centralized platform, are you really in full control?
Self-custody allows users to keep control of their own private keys, meaning they,not a third party, authorize every transaction. While this also comes with the responsibility of protecting your wallet and recovery phrase, it aligns closely with the original vision of decentralized finance.
STON.fi embraces this approach by enabling users to connect compatible TON wallets and trade directly through smart contracts. Your assets remain in your wallet until you decide to make a transaction, rather than being deposited into a centralized exchange account.
This model offers greater transparency because transactions occur on-chain, where they can be verified publicly. It also reduces reliance on intermediaries for everyday trading activities.
Of course, self-custody isn’t risk-free. Users should always verify official websites, avoid phishing attempts, and securely store their recovery phrases offline.
As decentralized finance continues to grow, understanding the balance between freedom and responsibility will become increasingly important.
Would you choose full ownership of your assets over the convenience of centralized custody? Why?
Why this setup? 1H SHORT bias confirmed. Price spiked to 1.631 on the quantum news then dumped straight to 1.515, nobody held the catalyst. Recovery attempts are capped under 1.560 with clear lower highs. Each bounce is weaker than the last and volume is fading on the green candles. Macro at -40% on 180 days tells you this is a relief bounce in a downtrend, not a reversal.
Debate: Quantum cryptography is a real fundamental upgrade for $NEAR but price rejected 1.631 hard, do you trust the narrative and buy the dip or short the failed recovery under 1.560?
Why this setup? 1H SHORT bias active. Price pumped to 0.3687 on listing hype then got sold into immediately, that’s classic news-driven distribution. Every recovery since has been capped under 0.3560 with lower highs tightening. Volume dried up on the bounces but picked up on the drops. Macro at -55% on 180 days means there’s no real buyer base here, just traders chasing headlines.
Debate: Robinhood listing news already priced in and dumped, do you short the dead cat here or wait for a confirmed break below 0.3507 before sizing in?
Why this setup? 1H SHORT bias confirmed. Price pumped hard from 0.2710 to 0.2886 then rolled over immediately, no consolidation at the highs, just distribution. Every bounce since is getting capped lower. Compression at 0.2771 with shrinking candles means sellers are in control, not buyers. Macro is still -50% on 180 days, this bounce was borrowed time.
Debate: $ADA is compressing right under resistance at 0.2800, do you short now with tight SL or wait for a failed retest of 0.2800 before entering?
Why this setup? 4H structure showing higher lows from 1.850, each dip is getting bought faster. Price pushed 2.050 and pulled back clean, no panic selling. Entry zone is tight against the 2.000 psychological level. ATR is moderate, momentum is building not fading. Osmosis governance news adds ecosystem attention without being a direct pump catalyst.
Debate: $ATOM is forming higher lows on the 4H but macro is still -32% on 180 days,do you size in now or wait for a clean 4H close above 2.050 before entering?
Why this setup? 4H SHORT bias confirmed. Price rejected 640 hard and hasn’t recovered, every bounce is getting sold immediately. Lower highs printing on both 1H and 4H. ATR is wide, momentum is clearly downward. The 70% weekly pump was the distribution phase, not the start of a trend.
Debate: $ZEC is down 7% today but still up 37% on the week, do you short the dead cat bounce here or wait for a clean break below 554 first?
Why this setup? 4h sweep completed at 0.0820 with price snapping back immediately. RSI on 1H recovering with room to run. ATR is low but the recovery candles are clean. 271M tokens just got burned — less supply, same demand. Daily trend is range, not bearish — this is mean reversion, not a momentum play.
Debate: 271M tokens burned and price already bouncing, do you trust the catalyst or wait for 0.0840 to confirm before sizing in?