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  1. Home
  2. /Glossary
  3. /Liquidity Mining
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defi

Liquidity Mining

Earning tokens by providing liquidity to a protocol.

Definition

Earning tokens by providing liquidity to a protocol. It's how DeFi protocols attract capital, essentially paying you to deposit funds. The rewards can be lucrative but come with risks like impermanent loss and smart contract bugs.

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Learn More About Liquidity Mining

GuideYield Farming Guide

Related Terms

Liquidity Pool

A pool of tokens locked in a smart contract that enables decentralized trading.

Yield Farming

Strategically moving capital between DeFi protocols to maximize returns.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

Adaptive Fee

DEX trading fees that automatically adjust based on market conditions like volatility or trading volume.

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