As a tool for incentivizing large amounts of liquidity or AUM, liquidity mining (LM) has been a vital aspect of DeFi. While some protocols allow for extended token emission via LM, many others use it to bootstrap AUM. Large onchain DEX liquidity for our product allows more buying options and helps the DPI price stay close to the Net Asset Value (NAV). However, direct liquidity mining for DPI is a significant expense for Index Coop.
William X
August 11, 2021