# Liquidity mining

**Published by:** [MOgenl](https://paragraph.com/@888up/)
**Published on:** 2022-08-06
**URL:** https://paragraph.com/@888up/liquidity-mining

## Content

Liquidity mining (also known as yield farming) is a key feature of DeFi that allows people to earn rewards by depositing (or "pledging") a cryptocurrency or token on a DEX or dApp. Some platforms reward users with another token, which can then be pledged to the same or another DEX or dApp without limit. Even more attractive is the fact that each cryptocurrency or token can earn a return (e.g. interest on savings) and can be pledged (that is, "mined") for a higher return. This is similar to depositing cash in different banks; the difference is that you need to get a separate token from each bank before you can deposit it in the next bank for a higher return

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