Liquidity mining, also known as yield farming, is the process of providing liquidity to decentralized exchanges using cryptocurrency (DEXs). DEXs attempt to reward customers who contribute capital to their platform because the basic goal of an exchange is to be liquid.

The majority of DEXs are decentralized by using an Automatic Market Maker to replace order books (AMM). A smart contract that regulates trading is known as an AMM. Users do not have to trade the order book of an exchange because smart contracts are decentralized. Instead, they essentially exchange goods and services with other users.

Token swaps enable you…

Bheka Mchunu

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store