To incentivize liquidity in these AMM pools, many projects have resorted to liquidity mining or spending money on rewards. This poses a whole other set of issues. By giving out free tokens, projects are attracting mercenary yield farmers who will come in, provide liquidity, suck up all the rewards and then, once the rewards are done, they sell and move on to the next project running a rewards program. Meanwhile, the initial project is left high and dry.
This news is republished from another source. You can check the original article here
Be the first to comment