Benefits of Liquidity Mining
Since the relationship between the DEX, liquidity pools, and liquidity providers is symbiotic, liquidity mining benefits all parties involved. Some of the benefits include:
LPs earn rewards: Liquidity mining rewards liquidity providers with a yield similar to staking. The process is autonomous and on-chain, ensuring equal distribution of rewards.
Decision-making rights: Since the rewards are in the protocol’s native token, holders gain voting rights within the ecosystem.
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