Mercenary Capital

Mercenary capital is the word used to describe the opportunistic money contributed by investors looking to profit personally from a platform’s short-term incentive schemes. As soon as these investors discover more lucrative programs or when the benefits offered fall short of their desired goals, it is frequently fleeting or ephemeral.

Many AMM platforms run a growth hacking program called liquidity mining and yield farming in order to reward small to medium size investors. Simply defined, the program offers additional benefits to liquidity providers (LPs) that chose to stake or lock in their LP tokens (typically in the form of governance or platform native tokens).