The income/benefits of liquid mining include governance tokens/coins, transaction/transaction fees, etc. Liquidity mining can obtain passive income/benefits simply by depositing/inserting tokens/coins, but if you want to obtain higher income/benefits, it needs to be managed. The rate of return/profit between different protocols is different, even if the same agreement is different There are also big differences in the revenue/profit between the goods/coin market or the token/coin pool.
The revenue/profit of liquid mining depends on many factors. Since the amount of tokens/coins issued in each time period (daily or weekly) is basically fixed, the revenue/profit mainly depends on the price/price of the reward/incentive token/coin. Grid, the weight of liquidity itself (determined by influencing factors) and the proportion of total liquidity. With the increase in total deposits/payments and total borrowings/payments in different goods/currency markets, mining revenue/profits are also diluted by more and more liquidity; Compound originally borrowed/loans in different goods/currency markets Interest/rate as its important distribution basis, and this factor has now been removed. This has a great effect on the flow of assets/products in the goods/coin market. Previously, BAT had the highest borrowing/lending interest/rate, resulting in the highest liquidity of BAT on Compound, but now that the rules are changed, it is greatly stimulated
Demand for stablecoin DAI.
Maximum revenue/benefits of liquid mining
Liquidity mining can maximize revenue/benefits through chemical operations. Of course, it also brings greater risks. Users can operate within the same protocol or across protocols.
The siphon of liquid mining
Internal balance
As more and more agreements provide liquidity for mining, capital/gold will flow to the place where the income/profit is the most abundant, and the utilization of capital/property between different agreements will be maximized. At the beginning, the balance of risk and revenue/benefit is reached within the agreement, and finally, the balance between different DeFi agreements is reached. Eventually it will form a balance with the outside world.