liquidity mining
Liquidity mining is a process in the world of decentralized finance (DeFi) where users provide their cryptocurrency assets to a liquidity pool. In return for supplying these assets, they earn rewards, typically in the form of additional tokens. This helps improve the overall liquidity of a platform, making it easier for users to trade and transact.
Participants in liquidity mining often use platforms like Uniswap or SushiSwap, which rely on automated market makers (AMMs) to facilitate trades. By contributing to these pools, users not only support the ecosystem but also have the potential to earn passive income through their contributions.