DeFi liquidity mining is the process of earning rewards by providing liquidity to decentralized finance protocols, such as decentralized exchanges or lending platforms. Users deposit their cryptocurrency into liquidity pools and, in return, earn rewards, usually in the form of platform tokens. This benefits the platform by increasing the available liquidity for trading and other activities, enhancing the platform’s overall functionality and attracting more users. For liquidity providers, it offers an opportunity to earn passive income on their holdings. However, users should consider the risk of impermanent loss when participating in liquidity mining.