How much can you make with STON.fi farming?
Not so far ago I was participating in the STON.fi farming event. I provided liquidity to the TON/tsTON pool and then used liquidity points in farming.
In this article, I want to share all of the fees and make some calculations (e.g.: how much liquidity do you need to provide to cover all of the fees with the profit from the very first day; what are the number to break even on the two weeks and one-month disctance; etc.).
Intro. Telegram, TON, STON.fi and bright future
STON.fi is the #2 DEX (decentralized exchange) by ton.app. Why is it interesting? Well, Telegram is growing, TON (The Open Network) has many utilities in Telegram (you can by eSIMs, unique Telegram handles, etc.), and TON is growing.
As you know when the native token of the network is growing most of the tokens in the ecosystem are growing too and they’re growing even faster (e.g.: check out APTOS ecosystem tokens growth in Q1 2023). That’s why it’s a good idea to keep an eye on the TON ecosystem and projects in it.
STON.fi is the first DEX on TON, that launched farming, you can already use STON.fi in @ wallet (TON wallet in Telegram messenger), they’re working on cross-chain and much more.
Terms and Conditions of farming on STON.fi
Farming is going on for one month. Reward pool (in this case 7500 $STON) spreading equally through the time. To simplify all of the farmers were getting 7500 $STON / 30 days = 250 $STON in a day.
The share of each farmer depends on the % in the liquidity pool. E.g.: at the start my 48.32 $TON and 44.73 $tsTON were 0.2%, at the end of the first day it was %0.06, and at the end of the farming, it was 0.03%. So, in the last days of the farming, I got ~ 250 $STON *0.03 =0.075 $STON in a day.
When you’re participating in farming you’re locking your liquidity on 2 weeks.
Profit, fees and calculations
Let’s track how I locked the funds in the liquidity pool and started farming. 1) I bough 94.29 $TON and send it to my Tonkeeper wallet.
2) I needed $tsTON. I knew that dew to high demand it will be cheaper to stake $TON and get tsTON “naturally” than trade it on STON.fi
3) I’ve provided 44.73 $tsTON + 48.32 $TON in the liquidity pool.
4) I used LP tokens (liquidity points that I received for providing tsTON / TON) to start farming.
5) And I’ve received my farming reward (2.91 $STON) 03/12/2023
Overall fee was 0.1+0.12+0.3+0.14+0.11=0.77 $TON. We can add liquidity callback at a maximum of 0.3 $ TON + fee for unstaking tsTON 0.12 $ TON + fee to send $TON back to CEX 0.1 $TON. I’ve not done this because I’m going to participate in the next farming event (I guess it’s too late to jump in on JETTON/TON farming).
So the maximum fee to participate in farming and take all your money back on CEX is ~ 1.39 $TON.
Conclusuions
To overcome this fee in one day you need to provide 1.09/250*100%=0.436% of all of the liquidity pool. For tsTON / TON it were ~ 650 $TON.
Based on my first-day result (0.28 $STON for ~94 $TON) 1.09*94/0.28 = 365 $TON will be enough (if you’ll start farming ASAP).
To break even in one month you need to provide at least 35 in $TON value.
My profit at this moment equals ~ 3.68 $TON — 1.09 $TON = 2.59 $TON or 2.59*100%/94.29=2.74% in TON for one month of framing. Plus additional ~0.2 $TON profit from the liquidity pool.
I’ll definitely continue my participation in STON.fi farming events. Mostly because of the reasons in the Intro. STON.fi is a great DEX of a growing Network that is based on the messenger with a growing audience.
You can track STON.fi promotions on the Telegram channel of the DEX. I’m subscribed to it and I was fast enough to jump into TON/tsTON farming in one hour after the announcement.
