liquidity mining

Liquidity mining is a process where individuals provide their cryptocurrency assets to a decentralized platform or exchange, called a liquidity pool. By doing so, they facilitate trading and other financial activities on the platform. In return, they earn rewards—usually additional cryptocurrency tokens—based on their contribution. Think of it like earning interest by lending money at a bank, but in the context of digital assets. This helps improve the platform’s liquidity, making transactions smoother for everyone. Essentially, liquidity mining incentivizes users to supply assets that support decentralized finance (DeFi) ecosystems.