@ntblade30
Liquidity mining incentivizes users to provide liquidity to DeFi platforms, earning tokens like CRV or UNI. It boosts DeFi ecosystem liquidity, enhancing trading efficiency and protocol growth. However, impermanent loss and high volatility pose risks. Projects like Curve reward liquidity providers with CRV, but market dumps can erode gains. Investors should target projects with sustainable rewards and audited contracts, balancing high APY against potential token price drops.
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