Exploring the Benefits of DEX Exchanges: Why Ston.fi Shines on the TON Network
Once upon a time, I conducted a poll among my friends and discovered that most of them used the simple swap function built into their wallets to exchange their cryptocurrencies on the TON network. This revelation prompted me to delve deeper into the advantages of decentralized exchanges (DEXs) and, in particular, Ston.fi as the premier solution within the TON ecosystem.
To embark on this journey, let’s first explore what a DEX exchange truly is.
A decentralized exchange, or DEX, is a platform where asset trading occurs directly between users without intermediaries. Though this is a traditional definition, modern DEXs like Ston.fi operate slightly differently. Users deposit their funds into liquidity pools, providing the exchange’s automated systems with capital and, in return, earn a percentage of the profits from the difference in buy/sell rates.
In contrast to centralized exchanges (CEXs), DEXs do not have access to users’ funds, offering enhanced security and anonymity. For example, no one can guarantee that a centralized platform like Binance won’t sell your personal data or block your account. Thankfully, such risks are mitigated with DEXs.
So, what sets DEX exchanges apart from the swap functions built into wallets?
Although the changes might seem subtle, they are significant:
- Control over Trading: DEXs allow you to manage buy/sell prices more conveniently.
- Ease of Use: While swaps in wallets are faster and more convenient, they lack the comprehensive functionality of DEXs.
- Earning Potential: DEXs offer the opportunity to earn through liquidity pools.
It's important to remember that the swap function in wallets is a simplified abstraction of a DEX with fewer features. For instance, when I exchanged directly on a DEX, I received more STON for my TON compared to using the swap function in MyTonWallet.
When exchanging in MyTonWallet directly I received exactly 0.12 STON for my 0.3. TON
Trading on Ston.fi: A Practical Guide
To begin your journey with Ston.fi, you’ll need a non-custodial wallet such as TON Space, MyTonWallet, or Tonkeeper. Here’s a step-by-step guide to get you started:
1. Connect Your Wallet to Ston.fi
- Visit the Ston.fi website.
- Click on the “Connect wallet” button and select your wallet (in my case, MyTonWallet).
- Scan the QR code with your mobile device or choose another option to connect.
2. Exchange Cryptocurrency at Stone.fi
- On the site, you’ll find yourself in the exchange menu. Select the token you wish to trade in the upper field and the token you want to receive in the lower field.
- Ensure you have some TON reserved to cover potential blockchain fees. Any excess fee will be refunded.
- Enter the amount, click the swap button, and confirm the transaction in your wallet.
For a more in-depth exploration of the technologies behind staking and liquidity pools, stay tuned for my future articles. Thank you for joining me on this educational journey.
Recommended Reading: Why Exchange Notcoin for Another Cryptocurrency and Is It Worth Doing? https://blog.ston.fi/why-exchange-notcoin-for-another-cryptocurrency-and-is-it-worth-doing/
