What is DeFi mining?

One example of how liquidity mining works is through the lending of cryptocurrency. Investors can deposit their tokens into a DeFi lending platform, which then uses these funds to provide loans to borrowers. In return, the investors earn interest on their deposited tokens.

Another method of liquidity mining is staking. This involves locking up cryptocurrency in a smart contract to support the security and operation of a blockchain network. As a reward for their commitment, stakers receive additional tokens or transaction fees.

Liquidity mining, alternatively known as liquidity farming, is a process involving the lending or staking of cryptocurrency within decentralized finance (DeFi) protocols. This practice allows investors to earn additional tokens as rewards for their contributions.

BTCC, a top cryptocurrency exchange, offers a range of services that cater to liquidity miners. These include spot trading, futures trading, and a wallet service. With BTCC, investors can easily buy, sell, and store their tokens while also participating in liquidity mining opportunities.

The appeal of liquidity mining lies in its potential to offer higher returns than traditional savings methods. By participating in DeFi protocols, investors can tap into new revenue streams that are not available through conventional financial instruments.