@qqwwwwwwww
Liquidity providers are essential for DeFi ecosystems, enabling trading, lending, and swaps. Projects reward these metrics because they reflect tangible contributions to network functionality. Farmers supplying liquidity demonstrate risk-taking and ecosystem support, making them prime candidates for airdrops. Historical examples, like Uniswap and dYdX, allocated tokens to LPs based on contribution size and duration. Providing liquidity also strengthens wallet reputation and enhances credibility in sybil-resistant systems. While LPing carries risks like impermanent loss, it often yields dual rewards: trading fees and increased airdrop eligibility. Active participation in liquidity provision remains a cornerstone of effective farming strategies.
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