Liquidity farming allows users to earn fees and rewards by providing liquidity to trading pairs on Binance.
How It Works
1. Deposit assets into a liquidity pool (e.g., BTC/USDT).
2. Earn rewards from trading fees and Binance incentives.
Risks and Rewards
- Rewards: High returns during volatile markets.
- Risks: Impermanent loss when token prices fluctuate significantly.
Key Tips for Success
- Diversify your liquidity pools to minimize risks.
- Use stablecoins to reduce impermanent loss.
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