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Author: Admin | 2025-04-28
The Future of Liquidity Mining [More Profits, Fewer Risks]Liquidity mining can be much more than just a risky passive income strategy. Here is how it can be reshaped to bring more value and stability to the entire crypto market.What is liquidity mining?Liquidity mining is dead, said Coindesk.Of course, this clickbait statement is too far from reality: the death of liquidity mining would mean the inevitable end of the whole DeFi sector.But DeFi is still there…🤷♀️However, in light of all those inefficiencies and scams that the current liquidity mining model has revealed so far, it’s become necessary to rethink this concept and give it another shape.In this article, I will walk you through the current state of liquidity mining and why it’s been so profoundly criticized. I will also explain the innovative approach offered by Yellow Network that will not only fix the existing flaws of this concept but will also make it more valuable to the growth of the whole crypto finance industry.Let’s get started.The current state of the crypto liquidityBefore we dive into liquidity mining, let’s briefly look at crypto liquidity as a whole.Essentially, it has one giant issue — fragmentation.The crypto trading market is segregated into hundreds of discrete exchanges (CEXs and DEXs) — each with its own local fiat/crypto supply and demand, prices, and access limitations.I discussed the crypto fragmentation problem in more detail in my blog post “What is Web3 Liquidity Aggregation?”— check it out.👌Unlike conventional stock exchanges, almost all crypto trading platforms, even “blue chips,”
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