Liquidity Mining

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Liquidity Mining

What is Liquidity Mining?

Liquidity mining is an investing tactic in which users of the DeFi protocol contribute their cryptocurrency holdings to make it simpler for other users to transact on a platform. The contributors receive a portion of the platform’s fees or freshly released tokens in return for their work.
Sending crypto from one wallet to another is comparable to the procedure. Typically, a pool comprises of a trading pair like ETH/USDT. One of the two assets might be contributed to the pool by an investor acting as a liquidity miner (or supplier). The (LPs) make it simpler for traders to enter and exit positions by putting their assets into the Defi platforms, with a portion of the trading expenses going toward rewarding them.

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