Skip to main content

How Does the Concept of ‘Liquidity Mining’ Boost Stablecoin Usage?

Liquidity mining incentivizes users to provide stablecoin liquidity to a protocol (e.g. a lending pool or DEX) by rewarding them with additional governance tokens or other assets. This boosts stablecoin usage by offering a yield on holdings, increasing the total stablecoin supply available for borrowing, trading, and collateralization within the ecosystem.

How Does the Concept of ‘Circulating Supply’ Differ from ‘Total Supply’?
What Are the Implications of a High Total Supply but Low Circulating Supply?
How Does the Concept of “Liquidity Mining” Aim to Reduce Slippage on DEXs?
What Is the Difference between “Circulating Supply” and “Total Supply”?