Roles & impermanent loss
There are two ways to interact with the protocol.
Traders
Section titled “Traders”- Connect a TON wallet (no registration, non-custodial).
- Swap tokens instantly against pool liquidity, or route via the aggregator for the best available rate.
- Pay the network gas plus the pool swap fee (see Fees).
Liquidity providers (LPs)
Section titled “Liquidity providers (LPs)”- Deposit a pair of tokens into a pool and receive LP tokens representing your share.
- Earn a share of every swap fee routed through that pool — fees accrue into the pool and are reflected in the value of your position.
- Redeem your LP tokens at any time for your share of the underlying reserves plus accrued fees.
Impermanent loss
Section titled “Impermanent loss”The main risk for LPs. When the price of the two tokens in a pair diverges, the pool automatically rebalances, leaving you with more of the token that fell and less of the token that rose compared to simply holding both in your wallet.
- It is called impermanent because the gap narrows if prices return to their original ratio.
- It becomes permanent only when you withdraw while prices are diverged.
- Trading fees you earn offset some or all of this; whether providing liquidity is net-positive depends on volume vs price divergence.
Provide liquidity with tokens you intend to hold anyway, and prefer pairs with steady relative prices (e.g. stablecoin pairs) if you want to minimise impermanent loss.