What is Liquidity Mining?
Liquidity mining is a decentralised finance mechanism that allows the user (you) to provide liquidity to the pool and receive rewards.
Advantages of Liquidity mining
You can enter and exit the pool anytime you want.
There is a potential for high earnings in the Liquidity mining pools.
Risks of Liquidity mining
Impermanent loss:
This risk can occur if the tokens value while withdrawing is lower than the price you bought the tokens at. While entering the Liquidity mining pool. It is thus recommended to be aware of the token price volatility before you enter the Liquidity mining pool.
How to enter a Liquidity mining pool?
To enter the Liquidity mining pool, you have to own a token pair. You can swap the cryptocurrencies (Ethereum, etc.) for the Tokens usually in your wallet (Metamask, Coinbase etc.)
Once you own the right token (you can see the token that you need to enter, usually in the Liquidity mining pool, it is wise, to check, which token you need to participate in the particular Liquidity mining pool)
How to leave the Liquidity mining pool?
You can leave the LM pool anytime.
For more information and the steps for taking part in the Liquidity mining pool, click here.
