Benefits of Liquidity Mining
Last updated
Was this helpful?
Last updated
Was this helpful?
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 protocolβs native token, holders gain voting rights within the ecosystem.
ref: