Liquidity Mining
Liquidity Mining is a process in the world of cryptocurrency where users provide their digital assets to a decentralized finance (DeFi) platform. In return for supplying liquidity, these users earn rewards, often in the form of additional tokens. This helps improve the overall liquidity of the platform, making it easier for others to trade.
Participants typically deposit their assets into a liquidity pool, which is a smart contract that holds the funds. The more liquidity a user provides, the higher their potential rewards. This incentivizes users to contribute, benefiting both the platform and the liquidity providers.