Liquidity farming is a decentralized finance strategy where participants provide liquidity to decentralized exchanges or lending protocols by depositing digital assets into liquidity pools. In return, they receive rewards, often in the form of governance tokens or a share of transaction fees. This activity aims to earn passive income from digital asset holdings.
Context
News reports on liquidity farming frequently highlight its role in bootstrapping new decentralized finance protocols and distributing governance tokens. However, it is also discussed in the context of impermanent loss, smart contract risks, and the sustainability of high yield incentives.
The Dynamic Tick Array fundamentally re-architects Concentrated Liquidity Market Maker cost structures, enabling high-efficiency capital deployment for all users on Solana.
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