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The Ultimate Guide to Impermanent Loss Protection on STON.fi

  • A liquidity provider (LP) deposits assets into a trading platform to ensure liquidity for transactions.
  • Impermanent loss occurs when token prices in a liquidity pool shift compared to their original value.
  • STON.fi introduces features to mitigate impermanent loss, including time-based protection and higher returns through fees and rewards.
  • STON.fi utilizes the $STON token, smarter liquidity pools, and an insurance fund to protect LPs and provide financial security.

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