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Liquidity Mining with Uniswap

I wanted to speak about this interesting earning with cryptocurrencies: the Liquidity Mining.

Liquidity Mining means that someone, a liquidity provider, can give some crypto to a DeFi pool (Decentralized Finance).

The provider has to give a pair of token (ie: CRV/ETH), with a defined ratio depending of the current price of tokens.

If he gives 100$ of ETH, he has to give also 100$ of CRV at the same time.

In return, fees paid by people (traders exchanging CRV or ETH) who want to buy token (ie: CRV), are distributed to liquidity providers, in proportion of the total liquidity available in the pool.

Look at the picture : you can see some calculation about its operation (price, sell, buy, yield)

liquidity mining board

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