Hello! 👋🏻 In this post, we will tell you about Totem liquidity mining.
📌 Liquidity shows how quickly it is possible to buy or sell a certain asset on the market at the optimal price for it. Liquidity is essential for any asset traded, including cryptocurrency. Liquid markets are more extensive, while an illiquid market can put traders in positions that are difficult to exit.
❓ What is liquidity mining?
📌 Liquidity mining is a mechanism used to initiate liquidity. Typically, this means that DeFi users interact with the protocol and receive their own tokens of that protocol.
❓ How does it work in Totem?
🔹 Users are rewarded with Totem platform tokens for offering their assets to the market. Without the intervention of arbitrageurs, the Totem platform does not automatically change prices when external prices change.
🔹 Profit of external arbitrageurs from spreads between the platform and external exchange. Users provide liquidity to the platform and the deposit spread is lost.
🔹 Users suffer the loss of the asset price and lock up the liquidity of the token, yet they gain profits. In addition to commissions for sharing the platform and interest, they can also sell the tokens rewarded by the platform for more profits.
🏆 Thus, thanks to liquidity mining, users can be confident in their investments in our token, while having the opportunity to earn not only due to the rise in the price of the token, but also this mechanism.
📢 Find out more about the Totem project on our website:
http://totprotocol.com/ https://i.ibb.co/MnKRtv2/Elw-PLZr-Xg-AEJA0a.jpg still the most important thing for me is to get passive income and this will be just great for all of us