How to recognise a scam token in a liquidity pool

Scam tokens are the main reason why liquidity providers fail to make a profit. Such tokens exist everywhere.

On the TON blockchain, these kinds of tokens also appear — this doesn’t mean that the blockchain itself is unprofitable or a scam. In DeFi, everyone has freedom, and some people take advantage of this by creating scam tokens and liquidity pools.

On STONfi, most liquidity pools are fair and profitable for liquidity providers.

The main indicator that a liquidity pool or token may be a scam is when there is liquidity in the pool, but no swaps are taking place. Many creators intentionally add such pools in order to gain profit for themselves. Liquidity providers should be aware that a token in such a pool is likely to be a scam.

If you are new to providing liquidity, it’s best to start with stablecoin pools on STONfi. This will allow you to understand how to supply liquidity more effectively and gain practical experience from reliable pools.

Once you become more experienced with liquidity pools, you can move on to more profitable pools on STONfi. These are usually volatile token pools, which may bring higher returns but also carry the risk of impermanent loss and potential lack of profit.

STONfi combines both stable liquidity pools, which have low volatility but a high number of swaps, and token-based pools, which provide higher volatility — and therefore greater potential rewards — for liquidity providers.

The most profitable and most liquid liquidity pools can be found on STONfi.