Liquidity farming is the process where users provide their assets to liquidity pools to support trading on the platform. In return, they receive rewards in the form of tokens. This is particularly popular in the DeFi space, but Binance also offers centralized solutions.
How it works:
1. The user adds cryptocurrency to the liquidity pool.
2. These funds are used to facilitate trading on the platform.
3. In exchange, the user receives a portion of the commissions from trading operations and additional tokens.
Advantages:
- Opportunity to earn income without active trading.
- Access to new tokens that may significantly increase in price.
- Flexibility: you can choose different pools with different risk levels.
🔹 Binance Launchpool
Binance Launchpool is a platform where users can farm new tokens by simply locking their BNB, FDUSD, or other assets. It is one of the safest ways to access new cryptocurrencies before their official listing.
How to participate:
1. Choose an active project on Binance Launchpool.
2. Lock your BNB or other supported assets in the corresponding pool.
3. Receive new tokens as rewards.
Examples of recent projects:
- Bio Protocol (BIO) is a platform for decentralized science (DeSci), where users could farm BIO by locking BNB and FDUSD.
- Huma Finance (HUMA) is a PayFi project that allows payment institutions to settle using stablecoins.
Advantages:
- Access to new tokens without the need to purchase them.
- Opportunity to earn in the early stages of the project.
- Ease of participation: simply lock your assets and wait for rewards to be credited.
