When you swap tokens on STON.fi, you don't need to wait for another trader to take the opposite side of your trade. The liquidity is already sitting in a pool, ready to be used.
A liquidity pool is basically a shared pool of two tokens, such as GRAM/USDT, supplied by liquidity providers (LPs).
When someone swaps, one token leaves the pool while the other enters. This allows trades to happen quickly without relying on a traditional order book.
But here's the interesting part: the people providing that liquidity can earn from the activity.
On STON.fi, eligible liquidity providers receive a share of transaction fees generated by their pool. The guide states a 0.2% transaction fee, distributed among LPs according to their share of the pool.
So the basic cycle is:
LPs provide liquidity → Traders swap → Fees are generated → LPs receive their share.
Of course, providing liquidity also means supplying both tokens in the required proportions, and there are risks to consider.
But at its core, that's what a liquidity pool does:
It provides the liquidity that keeps a DEX moving.
@STONfi DEX #STONfi #DeFi #LiquidityPools #TON #Crypto
