Liquidity provision, farming, and staking — what's the difference?

Liquidity provision, farming, and staking are basic operations on STON.fi. All three are related to locking assets to receive additional rewards and opportunities.

This guide is for users who already know the basics of TON and want a practical overview of how these three earn mechanics work on STON.fi.

In short:

✅ Liquidity provision = you add tokens to a pool so others can swap; you earn swap fees.

✅ Farming = you stake LP tokens from a pool to earn extra rewards (on top of fees), often for a limited time.

✅ Staking = you lock tokens in a smart contract to earn specific rewards. No liquidity pool involved.

What is a liquidity pool?

Think of a liquidity pool as a reservoir of cryptocurrencies funded by users called liquidity providers (LPs).

• A pool typically holds two tokens that form a trading pair (TON/USDt).

• The size of the pool depends on how much of each token participants contribute.

• When someone swaps Token A → Token B, the smart contract takes B out and adds A in; the price updates automatically based on the pool’s math (AMM).

• Bigger pools usually mean lower price impact and more stable pricing for traders.

On STON.fi, LPs earn a share of trading fees from every swap that uses their pool, proportional to the liquidity they added.

How it works:

• You select a pair (e.g., TON/USDt) and add tokens to the pool.

• In return, you receive LP tokens that represent your share of the pool.

• As swaps happen, you earn fees; your share auto-compounds into the position.

• You can usually withdraw anytime (unless you’ve staked LPs into a farm with a lock).

You earn: swap fees. You need: the two tokens (or use “one-sided” options where available). Main risk: impermanent loss vs. just holding the assets.

💡 Learn how to provide liquidity

💡 Learn more about impermanent loss

Farming

Projects want deeper pools so users can trade larger volumes with less slippage. To incentivize this, a project can launch a farm that pays extra rewards to LPs.

How it works:

1. You provide liquidity to a pool and receive LP tokens.

2. You stake LP tokens in the farm’s smart contract.

3. You earn additional rewards (on top of swap fees) for as long as the farm runs or until you unstake.

4. Some farms are ongoing; others run for a fixed period and may include lock-ups.

You earn: extra rewards (often the project’s token) + regular swap fees. You need: LP tokens from the selected pool. Main trade-off: lock-ups (if any) and the need to manage positions (claim/unstake).

💡 Learn more about farming on STON.fi

Staking

Staking on STON.fi is separate from liquidity provision. You lock STON directly in a smart contract — no pool and no LP tokens.

What you get are unique protocol-related rewards:

• ARKENSTON — a soulbound NFT (non-transferable) tied to your wallet. Planned as a key to the STON.fi DAO (membership & governance access in the future).

• GEMSTON — a community token (tradable). A calculator in the Stake tab shows how much GEMSTON you receive right after staking.

You earn: specific staking rewards (ARKENSTON, GEMSTON). You need: STON tokens to stake. Main note: not related to pools; rewards are protocol-specific.

💡 Learn how to stake STON

Side-by-side: what’s different?

Feature	Liquidity Provision	Farming	Staking
Assets you deposit	Pair tokens (e.g., TON + USDt)	LP tokens from a pool	STON
What you earn	Swap fees	Extra rewards (+ fees)	Protocol-specific rewards (ARKENSTON, GEMSTON)
Lock-ups	Usually none (pool-level)	Possible (farm-level)	Depends on staking rules
Main risk	Impermanent loss	Impermanent loss + lock-up if any	Opportunity cost (no IL)
Tokens involved	Pool pair	LP tokens	STON only
Goal	Power swaps & earn fees	Boost pool depth & reward LPs	Earn ecosystem rewards

Quick tips: do’s & don’ts

✅ Start small, learn the flows, then scale.

✅ Keep a little TON for fees.

✅ Read farm details (APR, duration, lock-ups) before staking LPs.

✅ Revisit positions regularly; claiming/farming mechanics can change.

🚫 Don’t assume pools keep “equal value” at all times — prices float with trades.

🚫 Don’t stake LPs you’ll need immediately if the farm has a lock.