How #STONfi Impermanent Loss Protection Transformed My Liquidity Farming
How can you avoid the risks of impermanent loss (IL) while providing liquidity? A few months ago, I found myself in this exact situation. I added liquidity to a pool, and when the market dropped, the token’s value fell significantly. Despite earning farming rewards, I ended up with less value than if I had just held my tokens.
That’s when I discovered #STON.fi’s Impermanent Loss Protection (ILP) for the STON/USDT V2 pool. This feature covers up to 5.72% of losses from a 50% price drop in $STON, with a $10,000 budget and automatic compensation of up to $100 per user.
For example, if you add liquidity when $STON is $8 and its price drops to $4, ILP protects you by covering a portion of the loss, so you don’t lose as much.
In my case, Impermanent loss protection gave me the confidence to continue farming without worrying about extreme price fluctuations. STON.fi’s ILP ensures that liquidity providers can focus on rewards instead of fearing the market.
If impermanent loss has kept you away from liquidity pools, now’s the time to act. Join the STON/USDT V2 pool and farm with confidence.
https://l.ston.fi/Yz5uNR
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