Liquidity Mining
Last updated
Last updated
To participate in GREN liquidity mining, you need to provide a pair of BNB/GREN in the GREN liquidity pool . By providing liquidity, you make the GREN price stable, and the system distributes transaction fees proportionally to all the liquidity providers in the pool. Additionally, you will get a reward of 0.9% per week of the GREN tokens in your mining pool for holding your liquidity.
How does Liquidity Mining work?
Liquidity mining is a process in which crypto holders lend assets to a decentralized exchange in return for rewards. These rewards commonly stem from trading fees that are accrued from traders swapping tokens. Fees average at 0.25% per swap, and the total reward differs based on one’s proportional share in a liquidity pool.
In the case of Pancakeswap and all DEXs who use the same AMM model, crypto holders must provide equal portions of tokens (in terms of value) if you have 10,000,000 GREN tokens (where each is priced at $0.0001 you have a total of $1,000. Therefore, lending 10,000,000 GREN means that you also have to provide BNBs worth $1,000.
The liquidity provided to Pancakeswap will be granted to clients who trade assets from the GREN/BNB liquidity pool. These fees are then collected and distributed to liquidity providers (LPs).
Liquidity mining is simply a passive income method that helps crypto holders profit by utilizing their existing assets, rather than leaving them inactive in cold storage. Assets are lent to a decentralized exchange, and in return, the platform distributes fees earned from trading to each liquidity provider proportionally.