Hi stonFi community!
I hope you’re having good day
1️⃣ What is Impermanent Loss?
Impermanent loss occurs when the price of assets you provide in a liquidity pool changes, reducing the value of your investment compared to simply holding the assets.
This is a common challenge for liquidity providers in DeFi.
2️⃣How does STON.fi solve this issue?
STON.fi introduced the Impermanent Loss Protection feature in the $STON/USDT V2 pool, offering up to 5.72% compensation for potential losses, providing greater security for investors.
3️⃣ Key Details of the Protection Mechanism:
Exclusive to the $STON/USDT V2 pool: Other pools are not included.
Compensation rate: Up to 5.72% of the loss.
Monthly budget: Capped at $10,000.
User cap: Maximum compensation of $100 per user.
Current period: January 1 to January 31