What is liquidity mining?

Liquidity mining is an investment strategy in which participants within a DeFi protocol contribute their crypto assets to make it easy for others to trade within a platform. In exchange for their contributions, the participants are rewarded with a share of the platform’s fees or newly issued tokens.

How to trade in balancer?

Balancer’s interface is one of the simplest among DEXes and requires no signups or KYC. Here’s how you can trade in the exchange. First, you need to visit the exchange portal and connect your Metamask or another wallet the same way you did when adding liquidity to the Balancer pool.

What is liquidity & how does it work?

In exchange for their contributions, the participants are rewarded with a share of the platform’s fees or newly issued tokens. The term liquidity means the ease with which an asset can be converted into spendable cash, so the easier it is for an asset to be spent, the more liquid it is.

What is balancer (Bal)?

The governance token BAL was able to rocket shortly after Compound and attracted quite a bit of attention. Unlike Compound or Aave, Balancer is not a lending protocol but a kind of decentralized exchange (DEX), an automated market maker (AMM). But what does that mean exactly? Where are the advantages compared to normal exchanges?