@bunniesjunkies
Liquidity mining is the process of earning rewards by providing liquidity to a decentralized finance (DeFi) platform, typically through liquidity pools. Users contribute their assets to these pools, and in return, they earn additional tokens as rewards, often from the platform’s native token. The goal is to incentivize liquidity provision to ensure the platform remains functional and liquid. The rewards can vary depending on the platform and the assets provided, but liquidity mining can generate passive income for users. However, risks like impermanent loss, smart contract vulnerabilities, and market fluctuations must be considered before participating.
0 reply
0 recast
0 reaction