Risks
Counterparty risk
When you provide liquidity through our smart contracts, they interact with platforms like DeDust and StonFi. DeDust operates on closed-source code, meaning the code isn't publicly available for review, while StonFi is open-source, allowing anyone to inspect it. However, vulnerabilities could still exist on either platform.
Since our smart contracts depend on these platforms, any vulnerabilities in their code could put your funds at risk. If there’s an issue with DeDust's closed-source code, it might go unnoticed until it’s too late. Even with StonFi being open-source, bugs or exploits can still be found.
Be mindful of the risks when providing liquidity through our smart contracts, especially considering the platforms we depend on
Impermanent Loss
When you provide liquidity in DeFi, the value of your assets can change due to price fluctuations between the tokens. This difference is what’s called impermanent loss. If the price of the tokens SettleTON supplied to DEXes changes significantly, you might end up with less value than if you had just held onto your tokens. This can happen even if the total value in the pool increases.
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