Liquidity Mining vs Yield Farming

A simple guide to understanding two of the most interesting phenomena in the world of crypto, Yield Farming, and Liquidity Mining. What is the difference between these two?

For fans in the world of cryptocurrencies and the Blockchain, 2020 is definitely the year of Defi: believe it or not, the shifted numbers and interest around this topic have boomed in recent months. According to some, DeFi is nothing more than the umpteenth bubble within a world still in its infancy in which FOMO, the promise of exorbitant returns and the use of phantom governance tokens are depopulating. As analyzed in the previous articles, DeFi is undoubtedly a cauldron in which we find an infinity of strategies, terms and projects in the most diverse fields, from DEX to Synthetic assets passing through the Lending Platform and the Asset Management Platform.

In this article, we try to clarify two terms that are too often confused and used one instead of the other, namely Liquidity Mining and Yield Farming.

Liquidity Mining: earning tokens by giving liquidity

Liquidity mining arises from two very important concepts in the world of cryptocurrencies, liquidity and mining. By liquidity, we mean…