> For the complete documentation index, see [llms.txt](https://doc.torch.finance/dex/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.torch.finance/dex/getting-started/architecture/comparison.md).

# Comparison

## **Limitations of STON fi's Design**

STON fi utilizes a **Router contract architecture**, where all assets are consolidated within a single Router contract.

* **Issue:** During periods of network congestion, all transactions could get stuck within the Router contract, slowing down swaps.

This centralized asset management can easily become a bottleneck, negatively impacting user experience and transaction efficiency.

While STON fi's V2 contracts introduce cross-pool operations, they still primarily rely on a single Router.

* Although multiple Router instances have been proposed, this could fragment liquidity, reducing overall trading efficiency.

Since Torch Finance shares a similar design framework with DeDust, we will focus on comparing the two.

***

## **Torch Finance vs. DeDust**

Like Torch Finance, **DeDust** adopts a design where **Vaults manage assets** and **Pools handle mathematical operations**. However, Torch introduces several optimizations to offer more flexibility and cost-effective solutions.

***

## **Key Differences Between Torch and DeDust**

1. **LP Vault and Preminting Mechanism**
   * **DeDust:** Pools mint LP tokens for users only after assets are deposited.
   * **Torch:** Each Pool has a **dedicated LP Vault**, and LP tokens are **preminted** during deployment and stored in the LP Vault.
   * **Reasoning:**
     * Torch’s cross-pool operations primarily occur between **Base Pools and Meta Pools**.
     * **Preminting** LP tokens reduces gas fees during each interaction, increasing efficiency in cross-pool swaps.
     * If you want to fully understand the benefits of preminting, refer to the [Deposit](/dex/getting-started/architecture/meesage-flows/deposit.md) and [Cross-Pool sections](/dex/getting-started/architecture/meesage-flows/cross-pool-operations.md).
2. **More Efficient LP Account Creation**
   * **DeDust:**
     * When depositing assets, the Factory requires **two transactions** (tx) to create and notify the LP Account:
       1. The first transaction creates the LP Account.
       2. The second transaction notifies the LP Account of the user's deposit.
     * **Drawback:** Each deposit requires two transactions, increasing costs.
   * **Torch:**
     * Torch’s Factory completes LP Account creation and deposit notification in **a single transaction**, significantly reducing gas fees and enhancing user experience.
3. **Avoiding LP Account Address Collisions**
   * **DeDust:** The calculation of LP Account addresses lacks a clear identifier (such as `queryId`), leading to:
     * When a user deposits assets consecutively, the second deposit may mix with the first, causing asset confusion.
   * **Torch:**
     * Torch incorporates a unique identifier (e.g., `queryId`) in LP Account address calculations, ensuring each deposit is handled separately, avoiding asset mix-ups.
4. **Flexible Deposits for Multi-Asset Liquidity**
   * **DeDust:** In traditional models like Uniswap V2, liquidity providers must deposit an equal value of all asset pairs. For example, to provide liquidity for the USDC-USDT pool, users are required to deposit $1,000 USDC and an equivalent $1,000 worth of USDT simultaneously. This rigid requirement limits flexibility.
   * **Torch:** With Torch's Stable Swap model, users can deposit liquidity in any configuration. For example, a user can choose to provide $1,000 USDC alone (single-sided liquidity) or $500 USDC and $2,000 worth of USDT (multi-sided liquidity), depending on their preference. This flexibility simplifies liquidity provisioning, lowers barriers to entry, and accommodates users with varying asset allocations
5. **Flexible Withdrawal Options**
   * **DeDust:** Liquidity can only be withdrawn **proportionally across all assets** (Withdraw All).
   * **Torch:** Torch offers two withdrawal modes:
     * **Withdraw All:** Proportionally withdraws all assets in the pool.
     * **Withdraw One Mode:** Withdraws only one specific asset from the pool, catering to users who need a particular asset, increasing flexibility.

***

## **Summary**

Torch Finance's contract design carefully addresses **gas fees, asset management efficiency, and liquidity flexibility**, introducing several innovative features to address the shortcomings of DeDust and STON fi.\
These improvements make Torch more competitive when handling large-scale liquidity and multi-asset deposits, providing users with a smoother and more cost-effective trading experience.