What Is 'Liquidity Mining' and How Does It Relate to Tokens? ▴ Learn

What Is ‘Liquidity Mining’ and How Does It Relate to Tokens?

Liquidity mining is the process of distributing a protocol's governance or utility token to users who provide liquidity to its platform. Users deposit their assets into liquidity pools, which enables trading on a DEX or lending on a protocol.

In return for providing this service, they receive newly minted tokens as a reward. This incentivizes participation and helps bootstrap the protocol's liquidity.

What Is a “Liquidity Mining” Program and How Does It Relate to Governance Token Distribution?

How Does Proof-of-Stake (PoS) Replace the Mining-Based Block Reward?

What Is the Role of a Mining Pool in Mitigating the Risk Associated with High Difficulty?

What Is ‘Liquid Staking’ and How Does It Address the ‘Lock-up’ Issue?