cryptopunk

Liquidity pools are the source of coins that are swapped for DEX. Liquidity providers add their coins to pools to receive a share of each swap made in a pair corresponding to the liquidity pool. But, in some cases, the ratio of total value locked (TVL) to volumes may be too low, resulting in high volatility of the pair. For example, on the $TON blockchain this is a widespread problem, as most coins only attract attention on any major events, and due to the low TVL, which has decreased over the period of inactivity as the APR in the pool has become too small to sustain the interest of liquidity providers.

To solve this problem and maintain liquidity in the coins, a farming concession was introduced on @ston_fi ($STON, $GEMSTON), the main DEX of the $TON blockchain. This system distributes an equal amount of coins as rewards to liquidity providers every day for a certain period of time, so that the APR, and therefore liquidity, is kept stable.

A prime example is the $TADA/TON pair on   STON.fi. Its daily volume is at the value of $463, but at the same time TVL is over $25000. This is achieved thanks to the liquidity support of the farming system, which APR is 573%.

In the $JETTON/USDT pool, for example, farming has been supported for more than 6 months, with APR in the range of 30-60% all this time.

But that's not all that can be thought of. For example, to attract more liqudity to the pair $STON/USDT IL-Offset was introduced, which reduces the risk of impermanent losses for liquidity providers by offsetting them. On top of that, the pair has a farming with APR in 30%. This resulted in a TVL of $2 million.