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Glossary

Liquidity Mining Meaning: What Does Liquidity Mining Mean in Crypto?

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Definition

Earning tokens by providing liquidity to a protocol

Programs like Compounds COMP distribution bootstrapped adoption; emissions schedules taper to sustainable incentives. Mechanics: LP tokens staked for rewards. APY: 10-50% typical. Risks: Token devaluation, opportunity cost.

Keywords

  • DeFi Terms