Liquidity Mining

What is LIquidity Mining?

Liquidity mining is a system or procedure in which users contribute cryptocurrencies to liquidity pools and are paid fees and tokens based on their proportionate share. These pools include liquidity in coin or token pairs that can be accessed through decentralized exchanges (DEXs). According to how much liquidity they contribute to the liquidity pool, liquidity providers are rewarded. Smart contracts regulate the actions in the liquidity pool, where each asset exchange facilitated by the smart contract results in a price adjustment. When the trade is facilitated, the transaction fee is proportionally split among all liquidity providers.