What is DEX exchange?
A DEX exchange is an asset trading exchange where transactions take place directly between users. This is a rather old definition, and nowadays they work a bit differently: in Ston.fi users deposit their funds into liquidity pools, providing the automated systems of the exchange with their funds, and earning a percentage from their investments, due to the difference in buy/sell rates.
Unlike centralized exchanges (CEX), decentralized exchanges do not have access to the user’s funds, which provides greater security and anonymity. No one can guarantee you that CEX exchanges can not sell your personal data, or block accounts, and DEX exchanges, fortunately for us there is no such possibility.
Ston.fi is a DEX exchange that provides anonymity, convenience and security of cryptocurrency exchange, as well as access to liquidity pools and staking programs for multiplying funds.
Let's speak about liqiudity pools and staking programs. How much can you earn in Binance's staking programs? 10 APR? 20? It's all immaterial. You can earn much more at Ston.fi. For example let's look on stable liquidity pool - TON/USDT.

67.64% Farm APR for safe tokens. That's a lot more than Binance offers. Okay, now let's figure out what a liquidity pool is.
What is a liquidity pool?
Aliquidity pool is funds fixed in a smart contract to accelerate transactions and stabilize prices. Liquidity pool providers are automated market makers (AMMs), such as STON.fi.
It’s still too complicated. Let’s make an analogy: you have 10 TON and you want to buy STON with them. At the current exchange rate (1 STON = 2.0591 TON), you would get 4.856 STON as a result of the exchange. If AMM did not exist, during the exchange you could buy out the last best offer for 1 TON at the price (2.0591 TON), and because of that, the other 9 TON would be sold at the worst and most importantly unpredictable price, let’s say 2.18 TON. STON.fi solves this problem by automatically providing an offer at the original price, and thanks to this, each of your STONs is bought at 2.0591 TON, and the amount of cryptocurrency received is known in advance.
To realize the operation described in the previous paragraph, funds are needed to create new offers at the old price for a particular user. These funds are invested by users in liquidity pools.
As a rule, users can earn on liquidity pools, so how is it that the exchange creates new offers at an unprofitable price for it?
Unfavorable price in this case is a wrong expression, because in liquidity pools the user provides the exchange with both currencies of the pair (TON/STON) in the price equivalent of 1 to 1. This means that they control both sides of the transaction, and losing on one half, they earn on the other. The user’s earnings, in turn, come from AMM commissions.

Guide to making money from STON.fi liquidity pools
Dowload a TON wallet. For example MyTon Wallet
Go to Ston.fi website. In the upper panel, select the Pools tab.

Choose the pool you like and click on it.

Click on the Connect Wallet button and follow the prompts on the screen. Only non-custodial wallets are suitable: TonKeeper, Ton Space, MyTonWallet.
After connecting the wallet, press the Add liquidity button.
Enter the amount of cryptocurrency you want to deposit into the pool. Remember that you need to have both cryptocurrencies of the pair and funds to pay for the transfer of both cryptocurrencies to the liquidity pool account.
Add liquidity and confirm transactions in the wallet.
If the pool you have selected has the Farm scroll down the pool page and provide your LP tokens (LP tokens - tokens that confirm your participation in the liquidity pool, transferred to your account automatically and hidden by the wallet) to Farm position.
Done!
Recommended reading:
https://guide.ston.fi/en/what-is-liquidity-pool
https://guide.ston.fi/en/how-to-withdraw-funds-from-a-liquidity-pool

DEX exchanges have surpassed CEX exchanges in terms of volume, according to the analytical publication The Block. Why do centralized exchanges with their "zero" commissions and airplane-like controlling yield to simple DEX exchanges? Let's look at the example of the most modern exchange on the TON blockchain - Ston.fi, on the DEX side, and the most popular and recognizable, which has become almost synonymous with cryptocurrencies for ordinary people - Binance, on the CEX side.
Ways to earn
On Binance this is accomplished through steaking and in rare cases lunchpads, here are some examples:
- $ETH staking - APR 3.01%, low risk;
- Double investing BTC/USD - APR 3.65%-128.57%, risk varies, at high APR the risk is too high due to the peculiarities of double investing - in case of a sharp BTC drawdown, you will lose all your funds until BTC rises in value, as any downgrade of BTC, the bot will buy it.
- $DOGO staking - APR 7.38%. in my opinion this staking option looks comical, because the capitalization of this coin is about 300 million dollars, which means that the price can fluctuate a lot and investors can lose their money, the profit of 7% does not cover such a risk.
and now let's take a look at the farming programs on Ston.fi:
- TO#N/USDT Farming - APR 46.8%, even though the APR is not too high for the DEX world, but this pair is quite stable, providing a medium level risk, which is fully justified by the high APR.
Now let's take a look at Farming memcoin on Ston.fi
- The WALL/TON pair provides APR of 328%, the risk is high, but compared to the same unstable token on Binance APR is 44 times higher.
Swaps
On Binance, your coins can be exchanged in two ways: spot trading and conversion. To illustrate, let's take a look at the FDUSD/USDT steiblcoin pair, if we exchange 1000 FDUSD we will get only 998 USDT, this is due to slippage, but in fact there is a difference between the selling and buying rate. So, if we try to exchange 1000 USDT we will get 999 FDUSD, that is 0.1% loss. Do you think the rate is really fair, or the exchange has introduced an invisible commission?
On other pairs, the commission from the spot rate can be more than 0.5%. In spot trading, surprisingly the sell and buy rates are mostly the same with minimal difference (<0.05%). But Binance takes a fixed commission of 0.2% on each exchange.
There are no other real stablecoins on the TON blockchain yet, so let's take the USDT/TON pair as an example:
For $1,000, the exchange will send you 148.34 TON (at a flat rate of 0.148 TON per USDT). Slippage is also present, but the maximum slippage can be customized, as well as you will have to pay the blockchain commission, about 0.07 TON. Yes, and the commission will have to be paid, the same 0.2%. This is even worse than on CEX exchanges, but what is the appeal of DEX? First of all, no one cheats you with phantom commissions, a small thing - but nice. Secondly, you get a payment to your wallet, in any volume and without tracking. And to withdraw funds from Binance you will have to pay commission one more time.
But all this is trifles - the main problem of CEX, in the difference from the rate of DEX. The exchange rate depends on trading on the exchange, and the DEX rate is the real value of the token. And it can differ quite significantly, at the expense of which investors can lose money due to arbitrage.
#DexTrade #CEX:

This article will be the final chapter in my story about the future of Ston.fi, because at the moment Phase 5 is the last thing Ston.fi has marked on its website. In this chapter we will analyze a couple of new words from the lexicon of the cryptocurrency sphere and finally summarize and draw conclusions about how the described innovations will fundamentally change not only Ston.fi and TON, but the whole sphere.

Phase 5 as the final phase promises incredible innovations that will give Ston.fi advantages that will equal the CEX exchange in terms of functionality, while retaining the advantages of the DEX exchange — no KYC will be introduced.
That’s what we’ll look at in this article:
Limit order bookMargin tradingGasless swaps

Limit order book
A limit order book is a tool of exchange, thanks to which a user can sell his assets at a certain value to a user who wants to buy them at that price in an automated mode.
The definition is too tedious, in fact it will enable Ston.fi to open transactions similar to spot limit transactions on CEX exchanges. Most likely, the commission fee will be a one-time fee for each participant of the transaction, and the collection of funds for closing orders will take place on the accounts of the exchange programmatically, and as soon as the order amount is collected, the buyer’s account will receive the funds purchased during the order. In general, for the end user it is not so important how it works under the hood, but, for general development does not hurt, I will give an example:
Vasya wants to buy 10,000 NOTs at a price of 0.012$, Nikita wants to sell only 4,000 NOTs at the same price, the exchange will automatically pay Nikita his 48$ (4,000 0.012) and record in its system (keeping the funds in his account) that Vasya’s order is closed by 40% ((4,000/10,000) 100%). The exchange will then go on hold until another person offers an order to sell NOT at 1.2 cents or less. This will be repeated until Vasya’s order is completely filled. The exchange will then pay Vasya his 10,000 NOTs with zero slippage. This is the main advantage of the limit order system over the classic cryptocurrency conversion system, but the price is your time — it is impossible to predict how long a limit trade will last, but most likely it can be closed prematurely.
Limit trading also helps to automate trading a bit. For example, you want to buy 100 000 NOT at 0.012$ and sell it at 0.014$. Limit trading will also help you in this: when you open a sell order you can stop watching the coin rate, and as soon as the token price reaches the value you set — the exchange will automatically fill your order.
Margin trading
It is worth making a small reservation here and understand what is the spot and futures market, it will be useful for us in the future. On the spot market you trade real assets, receiving funds to your wallet when trading, and on the futures market you trade contracts and trade them at the expected value of the asset, without owning it.
Margin trading is done on the spot market, which is what makes it different from futures trading. In margin trading, the user borrows a certain amount of funds against the collateral of his personal funds, for an amount multiple of the collateral. This will make the trade more responsive to changes in the value of the asset. For example, if you take STON with a pledge of 10$ and 10 leverage (leverage shows how many times the volume of borrowed funds exceeds the volume of the pledge), if the price increases by 10%, you will earn not 1$, as in normal trading, but 10$. If the price decreases by 10% — your trade will be liquidated.
So far, I have no idea how margin trading will be implemented — it will be one of the complex technological and logical solutions of Ston.fi, but I’m sure their team will manage it all.
Gasless swaps
For any exchange using Ston.fi, you need to have some Ton in your wallet to cover blockchain fees. This can be extremely inconvenient for users who don’t use Ton very often. In the huge Notcoin drop, we saw that people who transferred their funds to wallets other than CEX exchanges could not sell the coin because they did not have Ton to cover the commissions. Ston.fi will solve this problem with gas-free swaps: when a transaction takes place, Ton will be automatically transferred to the user’s wallet from the exchange. Obviously, this is not free — the amount needed to pay the commission will be added at the current Ton rate to the coin the user wants to exchange.
Bottom line
This phase truly delights me, because once it is realized, for me personally, as a regular CEX user, exchanges will lose their importance, as everything I love them for will appear on Ston.fi. With the innovations that Ston.fi plans to introduce in the first phases (cross-chain), the exchange will become the most technologically advanced and user-friendly exchange ever in the DeFi world.
Any user will be able to utilize the CEX exchange features while remaining anonymous and enjoying DEX benefits.
Recomended reading:
https://guide.ston.fi/en/what-is-dex-and-how-it-workshttps://guide.ston.fi/en/blockchain-and-dex-fees

In this article, we will continue to delve deeper into cryptocurrency, break down a new term and find out what’s in store for Ston.fi Phase 4.
At stage 4, the DAO government protocol will be introduced and a bot will be added for quick and convenient swap operations directly in telegram. The bot is a logical continuation of one of the main tasks of Ston.fi: creating a convenient interface for working with cryptocurrency and generally simplifying interaction with the service. We will dwell on DAO in more detail.

What is DAO?
Decentralized autonomous organization (DAO) — a form of organizational structure in which there is no single leading body, and the participants act in the interests of the organization, as they themselves are stakeholders in it. Organizational decisions are made by invoking smart contracts on the blockchain.
The classic solution for such a structure is a bottom-up governance system, where the largest holders of a particular token, such as STON, have the most significant influence on the decision, and smaller holders have less influence in a linear relationship. For example, for a single STON held, a DAO participant receives 10 voting points. So a person with a hundred tokens will have a thousand times more influence on the decision than a 0.1 token holder. At the same time, each of them will be able to contribute to the voting.
DAO system is fully realized on smart contracts, so its management is transparent. For example, when a new feature is introduced, a vote can be held on Ston.fi, and each vote can be tracked in the logs of the participants’ interaction with the DAO smart contract.
“A DAO is people.” — Adam J. Kerpelman
The picture shows a structural scheme of voting using the DAO system:

The smart contract will count the total number of votes, we will assume that for 1 STON a participant gets 10 votes and suppose that the first (10 STON) and second (50 STON) participants will give their votes for decision A, totaling 600 votes ((10 + 50)*10) and the remaining participants (20 + 30 STON) will give their votes for decision B, totaling 500 votes. In the end, the DAO will make decision A.
Bitcoin
By the way, Bitcoin also has similarities with DAO, because participants involved in block verification make a joint decision on the confirmation of transactions. Each participant sends his vote in an automated mode, and the decision made by the majority is considered correct
DAO in Ston.fi
So far, it is not known in detail what exactly the final version of the DAO control will look like, but I can distinguish two main options.
Shared transaction validation
Such a system will contribute to a greater degree of decentralization for Ston.fi. But, in my opinion, such a system would be inefficient, as Ston.fi’s servers currently handle transaction verification just fine, and such a solution would require huge investments to implement smart contracts.
Shared desicion-making
This option seems more logical and convenient to me, as it will allow users to participate in the development of the exchange, for example, users will be able to nominate tokens on the basis of voting to add Farm opportunity to their pool of liquidity.
Recomended reading:
https://guide.ston.fi/en/what-is-blockchain-and-cryptocurrency
https://guide.ston.fi/en/what-is-dex-and-how-it-works

The DEX exchange and AMM STON.fi lists the project’s plans for the future. In this series of articles we analyze crypto terms, the impact of introducing innovations on STON.fi and the world of cryptocurrencies in general.
To begin with, I would like to point out that in this context “trustful” and “trustless” are not quite the same concepts, even though they are generally accepted. In trustful protocols we entrust our funds to a third party, in this case STON.fi, and in trustless protocols we entrust our funds to a code. But, we all know about numerous hacks that have resulted in huge material losses.
Trustless
Trustless protocols are protocols that, thanks to encryption methods, allow communication between two networks without the direct involvement of a third party. A special program with its algorithms performs the bridge operation without transferring the user’s funds to a third party.

It would seem that everything is cool: the funds do not get to anyone except you, the program works invariably and can not cheat you (do not be so sure of this, because you personally have never understood the source code, and do not look for vulnerabilities in it).
But, unfortunately, everything is not so smooth, and as a rule such protocols, sadly, work very slowly, and in principle have not a very friendly interface. Their inconvenience is their main problem.
Trustful
Almost every user who hears the word “decentralized” blindly believes that his assets move exclusively between their wallets, and in cases of exchange other users are not involved. But surprisingly, trustful protocols are still considered to be in the sphere of defi, even though they have an third party agent in the transaction. But this is not a bad thing — on the contrary, let your finances and get to the 3rd person, which in general can scam you, there are many sites that have passed the test of time, spent millions of dollars through themselves. STON.fi can be safely attributed to such platforms. Thanks to the introduction of trustful protocols, the user gets speed and convenience of transactions.
So, as you have already guessed Trustful protocols are protocols that conduct the transaction not directly, but with the participation of a 3rd party. For example, you can use it to send USDT (TON) to STON.fi, the exchange will process your transaction and send USDT (ETH) to your wallet on another network in a fairly short period of time.

I would like to say once again that crypto is a risk. Always. Any protocol can be hacked, because cryptocurrency is program code, and any code can be hacked. Numerous hacks of transactions, including Bridge have proven this. What to say if even the systems of the largest banks in the world have been hacked, in some cases even successfully.

By the way, in the third phase STON.fi also plans to introduce a new network into its cross-chain protocols, I have 2 options: STON.fi’s own network or Bitcoin chain. The exchange itself does not disclose its plans for this in more detail. In the first case, we will most likely be waiting for a well rewarded testnet, and in the second case — consolidation of the TON network in the world of cryptocurrencies, by supporting operations with all major networks (BTC Chain, EVM chains, TRON). I like both options very much, and now — we just have to wait.

Recommended reading:
https://guide.ston.fi/en/what-is-dex-and-how-it-works
https://guide.ston.fi/en/blockchain-and-dex-fees

Ston.fi is a DEX exchange that provides anonymity, convenience and security of cryptocurrency exchange, as well as access to liquidity pools and staking programs for multiplying funds.
On the official website of the platform there is a section with STON.fi plans for development, in this article we will understand what advantages these innovations provide both for TON as a whole and for the user personally.

SDK cross-chain
SDK — a software kit to simplify the performance of programmers of any task. Let’s not go into details, the main thing to note is that the appearance of a quality SDK for something, as a rule, entails a flow of developers, followed by new customers.
In the context of STON.fi, the cross-chain SDK will allow developers from other networks (Ethernium, Binance smart chain, Linea) to develop applications with transfer operations between different networks, without the involvement of third-party exchanges. For example, if you have 1 ETH and you want to exchange it to TON without having to use CEX exchanges. At the moment, to do this, you will have to perform a long list of actions, pay a lot of fees, and it is simply impossible to automate this process:
Transfer ETH to USDT on Tron using existing applications, which, by the way, use existing SDKs.Transfer USDT to Telegram walletTransfer ETH to USDT on TON with the help of an already existing bridge operationExchange USDT to TON
In total, at the current exchange rate (1 ETH = 3791$, TON = 6.53$), you will pay about 30$ for commissions, while for smaller amounts the commission will remain the same, and if you decide to spend 100$ through this algorithm, you will have only 70$.
In case a certain Ethernium developer uses the STON.fi SDK, the end user will be able to perform the operation absolutely anonymously and pay only the commission of a single transfer of ETH and Ton, and the time spent will be much less. By the way, with such implementation, the total cost of commissions will be about 6$.
By the way, the first phase has already started, and we can find the source code and developer guides on the project’s GitHub. At the time of writing, the SDK is not yet fully ready, but it can already be used.
Cross-chain TON — TRON
Cross-chain is a system that allows users to access applications and cryptocurrencies independently of their underlying blockchain. Usually, this buzzword is used to stigmatize systems tied to bridge transactions and wrapped tokens, but STON.fi has something bigger — transactions will be performed directly, without the aforementioned bridges and wrapped tokens. This will increase the security of transactions. The cryptocurrency community has long been aware of the insecurity of bridge transactions, and wrapped tokens are still the same tokens over which control may reside in the hands of ill-wishers (they can skam). High-profile hacks in bridge operations include:
Ronin bridge — hackers stole ETH and USDC worth $540 million dollarsWormhole — thanks to a vulnerability in the Solana bridge, attackers have stolen $326 million worth of Solana tokens.
Now let’s talk about the danger of wrapped tokens. Let’s understand how bridge systems work in principle:
Look-and-mint is a classic system, modified version of which is the main one at the moment: a user blocks his funds with an agent, who gets full access to the funds provided to him, and in return receives wrapped tokens in another network. The problems here are as follows: no one and nothing can force the intermediary to return the blocked funds in case of his refusal; When the price of a wrapped token is reduced, in most cases the user receives the original, not wrapped token at the value of the wrapped token, not its quantity. That is, if the wrapped token drops and the original token does not, the user loses some of their funds. This is a surprisingly strange concept that violates the basic principle of such a system.
In the second phase, STON.fi will introduce the same system (without wrapped tokens and bridge transactions) for other popular networks: Polyhon, EVM chains.
Stableswaps routing
To begin with, let’s understand what stableswap routing is — it sounds scary, but in reality it’s nothing particularly complicated: AMM checks in real time all possible ways to exchange 1 stalebcoin for another in “complex” operations. For example, there is no direct pair USDT(TON) — USDC(ARB), and it can be reached by different paths:
USDT(TON) — USDT(ETH)-USDT(ARB)-USDC(ARB)USDT(TON) — TON(TON)-TON(ARB)-USDC(ARB)

Such possible paths can be listed for quite a long time, stableswap will compare the input and output amount for each of them by smart algorithms and choose the best one for the user in a fraction of a second.
Now let’s understand the concept of Stableswap — since the prices and commissions on stablecoins fluctuate, exchanges with this system select the moment when slippage and commissions will be minimal. Initially, a simple formula was used for this purpose: coin1 * coin2 = const, but due to the large influx of users per pair, the transfer fee increased and became unpredictable. To solve this problem they started to use a more complex mathematical formula, which I don’t see the point in quoting.
Recommended reading:https://guide.ston.fi/ru/nepostoyannye-poterihttps://guide.ston.fi/ru/komissii-blokcheina-i-dex

#Ston #DEX #Stableswap #SDK #CrossChain