Swap and pool
Swaps are a key feature of most DEXs. The user sends one coin into the pool's smart contract and receives another in return. But, to enable this feature, the liquidity pool must contain the coins the user wants to swap. This requires liquidity providers: they add both coins of any pair to the liquidity pool at a price equivalent, and in return receive a share of each swap performed. This allows liquidity pools to achieve good APRs, for example, you can find such pools on the main DEX of the $TON blockchain:
$MAJOR / TON, APR - 26%.
$SOON / TON, APR - 202%.
$NOT / TON, APR - 30%
The problem
It would seem that everything is good - after all, liquidity pools are the price-forming elements of the pair, but in case of a strong change in the price of a coin from the pair, there are volatile losses, which due to the high volatility of cryptocurrencies can be fatal.
The solving
To solve this problem, Impermanent Losses Protection was introduced on STON.fi. This system automatically returns up to 5.72% of impermanent losses in $STON tokens with a limit of $100 per user. At the moment this system is only available in STON/USDT pair on STON.fi, which also has LP-token farming, which allows you to get additional rewards for liquidity delivery after adding LP-tokens to a smart contract. Due to this, the pair currently has an APR of 37%.
