Liquidity mining, also known as yield farming, is the act of providing liquidity via cryptocurrencies to decentralized exchanges (DEXs). ... Since smart contracts are decentralized, users do not have to trade the order book of an exchange. Instead, they effectively trade with other users.

What is DeFi liquidity mining?

Liquidity mining is a DeFi (decentralized finance) mechanism in which participants supply cryptocurrencies into liquidity pools, and being rewarded with fees and tokens based on their share of the total pool liquidity.

What is liquidity mining cake DeFi?

Liquidity mining means that always two trading pairs are fed into the system by independent liquidity miners, for example BTC-DFI. ... These are calculated from the total Liquidity Mining Rewards of the Exchange, which can sometimes amount to more than 1000% APY, especially at the beginning of the DeFiChain DEX.