A major challenge in the DeFi sector is the lack of interoperability, which makes it difficult for users to transfer assets between different blockchain networks to access diverse trading and investment opportunities. STON.fi addresses this issue by enabling users to perform atomic cross-chain swaps without relying on third-party intermediaries. This innovation simplifies moving assets across multiple networks, enhancing accessibility and flexibility for users. STON fi aims to democratize financial services by focusing on interoperability, ensuring that people everywhere, regardless of their location, can participate in the DeFi ecosystem and take advantage of new opportunities.

What is STON Fi?

STON.fi is a decentralized automated market maker (AMM) exchange built on the TON blockchain, offering virtually zero fees, low slippage, and a user-friendly interface integrated with TON wallets. STON fi is designed to capture the Telegram audience with a sharding capability that enables millions of transactions per second, ensuring high throughput and scalability. The platform allows users to quickly swap native tokens across multiple chains without the need for bridging or wrapping, utilizing a Request for Quote (RFQ) system supported by Hashed Timelock Contracts (HTLC) to eliminate transaction risks and remove third-party dependencies, providing a secure and seamless trading experience.

STON.Fi Background

STON.fi was founded in 2022 by Viacheslav Baranov (CEO, co-founder), Stanislav Bazylevich (COO, co-founder), Mike Fedorov (CBO, co-founder), and Andrey Fedorov (CMO). The company is headquartered in United Arab Emirat (Dubai) and operates in the financial services industry, specifically decentralized finance (DeFi). As a private company, STON fi has grown to employ 47 people and focuses on creating innovative solutions for the blockchain ecosystem. The company has raised $4.49 million in funding from a group of investors, including notable figures such as Anton Bukov and firms like CoinFund and Delphi Ventures. STON.fi aims to leverage its position in the market by integrating its native STON token into the core mechanics of its protocol, promoting a decentralized and community-driven approach to financial services on the blockchain.

Features of STON Fi

Numerous features make STON.fi a versatile platform that caters to user needs, from individual traders to professional market makers, liquidity providers, and developers.

• STON fi allows users to trade across multiple blockchains without bridging or wrapping.
• As it is a decentralized platform, users have full control over their assets.
• Users can access STON.fi with the most popular app, Telegram Messenger.
• Enables market makers to participate in a wide range of markets.
• Provides enhanced liquidity options, allowing market makers to engage in more trades.
• Arbitrage opportunities without the need to maintain open positions in corresponding assets.
• Create a risk-free environment by eliminating third parties.
• Earn a share of exchange fees by providing liquidity.
• Additional yield through staking tokens and earning liquidity mining rewards

How does STON Fi work?

STON.fi works similarly to other Dex on any other blockchain, which can be described in the following steps.

• Users need to connect their wallets with STON Dex. Unlike other Dex, STON.fi requires two wallets to access their token balances and authorize transactions. It also calls for connecting two wallets to enable cross-chain swaps.
• Select the trading pairs and enter the amount. The STON fi protocol calculates the exchange rate and displays the estimated amount of tokens the user will receive.
• Review the transaction and confirm. Unlike a typical DEX that requires fees to be paid in native tokens (e.g., ETH for swaps on the Ethereum blockchain), STON.fi offers gasless transactions, and fees are deducted from the swapping token amount.

STON Fi Staking

STON.fi offers a unique staking model that gives users rewards and governance rights, distinguishing it from other staking platforms. When users stake their STON tokens on STON fi, they lock these tokens in a smart contract, ensuring the staking process’s security and integrity. By staking, users receive two types of tokens: ARKENSTON and GEMSTON.

1. ARKENSTON Token: This is a soul-bound, non-fungible governance token awarded to users when they stake their STON tokens. The ARKENSTON token is tied to the user’s wallet and cannot be transferred. It grants users DAO governing powers, allowing them to participate in decision-making processes and governance activities within the STON.fi ecosystem.
2. GEMSTON Token: This is a fungible reward token that users receive when staking their STON tokens. Unlike ARKENSTON, GEMSTON tokens are flexible and can be sold, swapped, or transferred to other users. These tokens provide a tangible reward for staking, offering liquidity and potential for profit.

Currently, users can choose to stake their STON tokens for periods ranging from 3 to 24 months. This dual token staking model not only incentivizes participation through rewards but also encourages active involvement in the governance of the platform, promoting a more decentralized and community-driven ecosystem.

STON Fi Pool

The liquidity pool is required to run the Dex protocol. On STON fi, liquidity providers earn income by receiving a share of the fees generated from transactions within the liquidity pool they support. For each transaction that occurs within a pool, liquidity providers collectively earn 0.2% of the transaction amount. This 0.2% fee is distributed among all liquidity providers in proportion to their share of the total liquidity in the pool. For instance, if a liquidity provider contributes 50% of the total liquidity in a pool, they will receive half of the 0.2% fee from each transaction involving that liquidity pair.

STON Fi Protocol Fees

The STON fi protocol collects fees from every trade on its decentralized exchange (DEX). The fee rate varies depending on the protocol type—a Request for Quote (RFQ) or an Automated Market Maker (AMM)—and the specific blockchains involved in the trade. All fees collected from these trades are converted into STON tokens on the TON blockchain. These tokens are then redistributed according to decisions made by the DAO. Additionally, the smart contract burns all incoming STON tokens, which reduces the overall supply and potentially increases demand for the token, enhancing its value over time.

STON Fi Roadmap

As of now, STON.fi is an automated market maker (AMM) decentralized exchange (DEX) built on the TON blockchain. Since its launch in 2022, STON fi has achieved several key milestones. These include integrating with the TON wallet to provide users with a seamless trading experience directly within the Telegram ecosystem, creating a Software Development Kit (SDK) to facilitate easier integration and development within the platform, and launching its native STON token, which plays a crucial role in the platform’s ecosystem.

STON Fi DAO

When users stake their STON tokens on the STON.fi platform, they automatically become members of the decentralized autonomous organization (DAO) governing the protocol. As DAO members, they can create and vote on proposals that affect STON fi’s future development and operation. The power each member has in voting is determined by the number of STON tokens they have staked and the duration for which these tokens are staked, which can be seen as ARKENSTON tokens in the wallet. DAO members may vote for the following changes:

• Asset listing/delisting. To list a new asset, users need to make a special proposal. The token will be added to the protocol if the proposal gets enough votes.
• Support new blockchain. A community can add a new blockchain to the protocol by voting. The new blockchain needs software that connects it to the STON fi protocol, and STON.fi Development LLC is responsible for developing this software.
• Protocol updates. Community members can propose new protocol features through voting. If the proposal is approved, STON.fi Development LLC will be responsible for developing and implementing the new features.

What is the STON Token?

STON is the native token of the STON.fi protocol on the TON blockchain, and it plays a central role in the platform’s ecosystem. As a utility token, STON serves multiple purposes, including facilitating swaps, enabling governance participation, and allowing holders to vote through long-term staking. The STON token follows a deflationary model with a capped total supply of 100 million tokens, which were all initially minted. Over time, some of these tokens will be burned to reduce the overall supply, enhancing scarcity and potentially increasing value. The distribution of the initial supply is designed to support all key areas of the protocol.

Here’s a shortened version of the token allocation for STON Fi:

• DAO Treasury: 20 million tokens, staked for 24 months to fund protocol modernization initiatives. Can be partially unstaked after this period.
• Incentives: 10 million tokens with 5-year linear vesting for boosting protocol usage through various incentives controlled by the DAO.
• Marketing: 10 million tokens, with 2 million immediately available and 8 million vested over 3 years for marketing activities like airdrops and campaigns.
• Operations: 10M tokens, 4M immediately available, and 6M vested over 5 years to fund protocol development, maintenance, and liquidity provision.
• Pre-Seed: 21 million tokens with a 12-month lock-up, vesting linearly over 2 years for pre-seed investors.
• Team: 14M tokens with a 2-year lock-up, vesting over 3 years for founders, employees, and future team members.
• Private Sale: 10 million tokens with a 1-year lock-up, vesting over 2 years for private round investors.
• Advisors: 5M tokens with a 1-year lock-up, vesting over 2 years for current and future advisors.

How do I buy STON Tokens?

• Go to Gate.io Exchange and create an account by entering your email ID and password.
• Set up your fund password by entering settings; this password will be asked during fund withdrawal.
• To buy STON tokens, you must complete KYC with the proper documents.
• After KYC, go to Spot Trade, search for STON, and select.
• After opening the new page, fill in the amount in STON or USDT you want to buy and click the buy button.
• After a successful buy, go to the Wallet > Withdraw page.
• Here, select STON, and then enter the wallet address.
• It will ask you for your fund password, 2FA, and email code; enter them correctly and submit.
• Your STON will arrive in your wallet after a few confirmations.

Conclusion

Due to its cross-chain interoperability feature, STON.fi is considered one of the best Dex on the Ton blockchain. The protocol aims to provide a secure, reliable, swift, and cost-effective means of conducting these cross-chain swaps without the need for bridging or wrapping or without the need for a native token. The first step towards achieving its mission is enabling people to seamlessly swap any crypto asset for any other.