@bbiabkhujei
Liquidity mining is a process where users provide liquidity to decentralized exchanges (DEXs) or lending platforms and, in return, earn native tokens as rewards. These tokens are often issued by the platform to incentivize liquidity provision. While liquidity mining and yield farming are similar in that both involve providing liquidity for returns, liquidity mining specifically refers to earning the platform's native governance or utility tokens, whereas yield farming might involve earning fees or other assets. The rewards in liquidity mining can often be more volatile because they are linked to the success and governance of the platform issuing the tokens, making it riskier but potentially more profitable for investors looking for exposure to the project’s ecosystem.
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