Gate.io Learn: What is Yield Farming on STONfi and How to Start?

The TON ecosystem is expanding rapidly and with it, advanced DeFi opportunities like yield farming are becoming more accessible. If you hold TON or Jetton tokens, understanding how to use platforms like STONfi can significantly boost your earning potential. Let's break it down.

What is Yield Farming?

In simple terms, yield farming is a way to earn extra rewards by locking up your crypto assets in a smart contract. It’s often called "liquidity mining."

On STONfi, it works in two layers:

1. Liquidity Providing (LP): You first provide equal value of two tokens (e.g., TON and USDT) to a pool. For this, you earn a share of all trading fees from that pair.
2. Farming: You then take the LP tokens you received (which represent your share of the pool) and stake them in a special "farm." This farm pays you additional rewards in another token on top of your trading fees.

Why do Projects Offer Farms? Projects create these incentive programs to attract and retain liquidity,which makes trading their token smoother and more efficient for everyone.

How to Start Farming on STONfi in 3 Steps:

1. Choose a Farm: Navigate to the ‘Pools’ section on STONfi and toggle ‘Farming’ to view only the pools offering extra rewards.
2. Add Liquidity: Select a pair. When you add your tokens, ensure the “Get farm rewards” option is toggled ON. This automatically stakes your LP tokens for you.
3. Earn Rewards: That’s it! You are now earning both trading fees and farm rewards. You can track your accumulated rewards directly in the interface.

A Smart Strategy for Beginners: TheSTON/USDT pool is a great starting point. It’s a perpetual farm (no end date) backed by the platform itself, offering consistent and reliable rewards—perfect for learning the process.

Key Takeaway: Yield farming on STONfi allows you to compound your returns on the TON blockchain. It’s a powerful tool for any investor looking to move beyond simple buying and holding.

Ready to put your knowledge into practice? →Start Exploring STONfi Farms

Disclaimer: Yield farming rewards are dynamic and can change. Always do your own research (DYOR) to understand the risks involved, including impermanent loss.