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​Liquidity refers to the degree to which an asset is quickly bought or sold at a stable price in the market, and this price ultimately reflects the inherent value of the asset. The stronger the liquidity of the asset, the easier it is for the natural process of price discovery to occur, ultimately making the market more efficient. In addition, liquidity and cloud mining lifetime contracts also contain another level of meaning, that is, assets can flow from one state to another state (commonly known as "monetization") quickly, even in seconds, and the assets before and after the flow. There is no major discount loss in value. Liquidity is a rigid demand for entrepreneurs and investors. The prices of illiquid assets are often false and cannot be verified. A fund that claims to return several times, if there is no liquidity, maybe a self-deception scam.  
![](http://image.danews.cc/upload/doc/20211021/61710196cfd52.png)  
In the cryptocurrency trading market, the liquidity of various assets and financial derivatives is equally important. Decentralized liquidity innovation is mainline of the development of blockchain technology. More and more ways, with a steady stream of decentralized mobility, cloud mining lifetime contracts will attract a steady stream of developers and create a steady stream of new applications. New applications bring higher efficiency and revenue sharing to investors, which will further attract more liquidity and new packaging of assets on the chain.  
Liquidity Mining was first launched by IDEX in October 2017 and aggregated dozens of different DeFi protocols. In the currency circle, the national cloud mining lifetime contract has long become a popular trend for all users. The so-called cloud mining lifetime contract is the behavior of exchanging resources held by users for a certain centralized token. And liquidity mining is essentially a network participation strategy in which users provide funds to the agreement in exchange for the original token of the agreement.  
The specificity of liquidity mining is that the network has specific requirements, that is, users do not need to purchase tokens, but must obtain token rewards through liquidity supply. A token is usually a governance token that allows the holder to vote on various parameters of the agreement (including the value capture mechanism). Many people often refer to it as "Yield Farming". Although these terms are often used interchangeably, Yield Farming and cloud mining lifetime contracts do not require a pass.  
But not all liquid mining projects have the same design and purpose. At least the current liquidity mining model has achieved a fair start, decentralized protocol writing, and growth/inflationary marketing. The main goal of a fair start is to distribute most of the tokens through some objective criteria (such as becoming an active user of the agreement) instead of direct sales and to ensure that everyone has an equal opportunity to obtain the token. The main goal of decentralized protocol writing is to gradually realize community ownership and minimize fund management. The main goal of growth/inflation marketing is to motivate specific user behaviors over some time.  
![](http://image.danews.cc/upload/doc/20211021/6171019687f8f.png)  
Liquidity mining usually has two main purposes: one is to incentivize users to inject liquidity into DeFi applications to increase the total lock-up volume (TVL) and capital supply of the application. Increased liquidity can effectively reduce transaction slippage and enhance the competitiveness of applications, thereby attracting more users to join.  
The second is to fairly distribute the governance tokens of DeFi applications to users. These users deposit funds on the platform and bear the corresponding opportunity costs (such as impermanent losses). Since the tokens are distributed fairly, neither party will be favored, so that a decentralized governance model can be truly realized. The liquidity mining mechanism used by different DeFi agreements is also different, mainly depending on what they hope to achieve.  
Based on this, liquidity mining may affect the enthusiasm of miners in traditional cryptocurrency mining in the short term, but the current defi is still hype after all, and the value behind it is relatively small. The interest rate of the basic defi protocol is very low. However, the profits of various liquid mining based on the basic agreement are scary. Therefore, liquid mining is unlikely to maintain high-interest rates for a long time. After a while, it will inevitably drop to near the base interest rate (% A few normal interest rates) will naturally lead to the survival of the fittest in the market. For cloud mining lifetime contract, although the profit is relatively small in the short term, if the timeline is extended to a few years, then it will inevitably obtain higher benefits from the development of the project. For the two mining methods (liquidity mining & cloud mining lifetime contract), It is not to say which one is better, but to weigh and choose based on a certain risk, benefit, income, and risk level, is the final investment method that suits you.

What’s the difference between liquid mining and cloud mining lifetime contract?

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​What’s the difference between liquid mining and cloud mining lifetime contract?

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What’s the difference between liquid mining and cloud mining lifetime contract?