The same trap keeps catching people: sorting pools by Highest APR and depositing without doing deeper analysis.
APR is only a snapshot of past performance. It does not guarantee future returns. What truly matters is the engine generating that yield, the Volume to TVL ratio.
Here is the reality.
Picture a liquidity pool as a room filled with trading fee rewards. The more people inside that room, the smaller each person’s share becomes. When liquidity is massive, your portion of the fees shrinks, even if the displayed APR looks attractive.
What you should really focus on is activity.
The goal is to identify pools where trading volume is strong while total liquidity remains relatively low.
Volume represents revenue. Every trade adds fees to the pool. More volume means more rewards being generated.
TVL determines how those rewards are distributed. The higher the TVL, the more participants sharing the same pool of fees.
How to evaluate pools on STONfi:
Look at the 24 hour trading volume and compare it to the liquidity.
A weak ratio looks like this: 10M in liquidity with only 10k in daily volume. Too many providers and not enough activity. Yields are likely to decline.
A strong ratio looks like this: 500k in liquidity with 200k in daily volume. High turnover, efficient capital deployment, and more sustainable returns.
The key takeaway is simple.
Do not chase the biggest percentage on the screen. Chase real usage.
A healthy liquidity pool operates like a busy marketplace, not a locked vault. Your capital should be actively swapped and generating fees, not sitting idle in an overcrowded pool.