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.