A brief discussion on liquidity mining: DeFi basics
Liquidity mining is an integral part of DeFi, and you should have a brief idea about it if you want to engage with it. This blog aims to educate you on that matter. You have probably heard about terms like Yield farming, and DeFi, if you are interested in cryptocurrency. The mining technique that is mainly associated with DeFi is liquidity mining. What is it? That’s exactly what we will be going to explore today in this blog on digital currency mining tips and tricks. In liquidity mining, investors add cryptocurrencies in a pool (more specifically, liquidity pool) to be rewarded with fees and DeFi tokens. The reward may depend on the participant's overall share. Liquidity pools would consist of coins (that indicate liquidity) and are used by the DeFiChain DEX ( Decentralized Exchange). The easiest way to do liquidity mining is to install relevant apps. Now, how to navigate those apps? Using them, a user can perform several actions, like adding and eliminating liquidity, etc. For adding to the pool, one would have to launch the application first. Then, the user should navigate to the section which gives access to all liquidity-related information. Now, you need to go through all this information, both articles, and videos, if possible. This will train you on the concepts, and how to navigate through the world. Apart from that, you will learn how to pick the right liquidity pair to earn rewards. You need to quite picky while doing that, and you cannot do that, without learning anything. However, some amazing liquidity pairs are mentioned below: • ETH-DFI • BTH-DFI • USDT-DFI While picking a pair, you need to ensure two things: • You have enough non-DFI (wrapped) cryptocurrencies in your wallet. • You have enough DFIs too If a user doesn’t have enough coins, then they need to learn how to do so, and then proceed further. If a user is equipped with sufficient knowledge and equipment, he can choose a pair, and then click the add liquidity button on the app’s interface.
Now, the user should input value (maximum values). If you don't want to add maximum values, the app will itself show a value, balancing the other. now, it's time to put an address where a user would like to receive the shares and rewards. When all this is done, he should click on continue, and verify all the details (rates, shares, etc.), and confirm. The transaction will be processed, and liquidity will be added to the network. experts advise not to close the application or click any button during this process. when completed successfully, the user can see the hash on the app's interface. the person can check it, and wait for his rewards. Like adding liquidity, a user is empowered to remove it too. The user will have to choose the pair he wants to remove, and the overall amount. Next, the address should be selected (if it something different from the default value). Now, it's time to continue the transaction, by verifying all the details and click the final button. Then the user will have to wait for the completion of the transaction. So, that's it with liquidity mining with today's blog on digital currency mining tips and tricks.