Contrast POL with “Liquidity Mining” Programs.
Liquidity Mining (LM) programs incentivize users to provide liquidity by rewarding them with additional native tokens (emissions). This liquidity is "rented" and often leaves when the rewards decrease.
Protocol Owned Liquidity (POL) is liquidity that the DAO owns outright, typically acquired through bonding or direct purchase. LM leads to high token inflation and temporary liquidity, while POL offers permanent stability with lower inflation.
Glossar
Liquidity Mining
Incentive Mechanism ⎊ Liquidity Mining involves rewarding users, typically with the protocol's native token, for providing capital to decentralized liquidity pools or staking mechanisms.
Protocol Owned Liquidity (POL)
Asset ⎊ Refers to the portion of liquidity within a decentralized exchange or lending protocol that is directly owned and controlled by the protocol's treasury or smart contracts, rather than by external liquidity providers.
Pol
Protocol ⎊ Within cryptocurrency derivatives, a protocol signifies the foundational rules and mechanisms governing the operation of a decentralized exchange (DEX) or a specific derivatives platform.