Liquidity mining
Liquidity mining is a process that involves incentivizing users to contribute liquidity to a decentralized finance (DeFi) protocol by providing rewards in the form of tokens. This is typically done to encourage users to trade and interact with the protocol, which can help to increase its overall liquidity and effectiveness.
Liquidity mining has become increasingly popular in the DeFi space as a way to attract users and provide them with a way to profit from their involvement in a project. By providing financial incentives, liquidity mining can help to create a more vibrant and active ecosystem, which can benefit both users and developers alike. It also helps in stabilizing the token prices and helps projects to bootstrap their infrastructure.