Liquidity mining (also called Yield farming) is a process in which crypto holders lend assets to a decentralized exchange in return for rewards.
By being a MIMO / PAR Liquidity Provider, users are able to "mine" MIMO while supporting Mimo Protocol liquidity by staking LP Tokens.
Yield farming comes with a risk of Impermanent Loss. It’s not as scary as it sounds, but it is worth learning about the concept before you get started. Check out this great our documentation about Impermanent loss.
There are different parameters to take into account when calculating the rewards:
- The rewards are determined by the DAO, i.e. the community can change the emission of the different pools through votes.
- The rewards are divided proportionally to all the user providing liquidity to the different pools.
- The APY displayed also depends on the price of the MIMO, if ithe price increases, the APY will also increase. You will earn as much MIMO as before, but MIMO will have more value ($).
You can provide liquidity for PAR/USDC and PAR/MIMO by following theses guides :