Looking to buy two tokens but find it difficult to get started? Why not try the pairing method of liquidity mining.
Deposit both of the tokens you favor into an AMM pool. This seemingly simple operation actually contains hidden logic. When one of the tokens rises first, the pool will automatically adjust, helping you absorb the other token at a relatively low point. In other words, regardless of which side starts first, you are essentially front-running the other — provided you have patience.
What are the benefits of doing this? Once the price increases of the two tokens tend to balance out, you'll find that the quantities of both tokens in the pool haven't decreased, and may even have increased. If you choose V2 liquidity mining, the auto-compounding rewards will keep accumulating your chips; with V3, the returns are more transparent, and you can directly see each reward deposit.
"Holding tokens is harder than holding a widow," but once you change your mindset, everything becomes clear. Using pools for mining instead of simply holding tokens allows you to participate in the growth of both favored tokens and earn additional income through market making — this is true maximization of returns.
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HallucinationGrower
· 15h ago
Sounds good, but has anyone mentioned the big pitfall of impermanent loss?
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StillBuyingTheDip
· 15h ago
This logic sounds good, but in practice, isn't it often inconsistent? When one coin crashes, another follows suit, making the pool feel like it's been artificially turned into a negative return.
Looking to buy two tokens but find it difficult to get started? Why not try the pairing method of liquidity mining.
Deposit both of the tokens you favor into an AMM pool. This seemingly simple operation actually contains hidden logic. When one of the tokens rises first, the pool will automatically adjust, helping you absorb the other token at a relatively low point. In other words, regardless of which side starts first, you are essentially front-running the other — provided you have patience.
What are the benefits of doing this? Once the price increases of the two tokens tend to balance out, you'll find that the quantities of both tokens in the pool haven't decreased, and may even have increased. If you choose V2 liquidity mining, the auto-compounding rewards will keep accumulating your chips; with V3, the returns are more transparent, and you can directly see each reward deposit.
"Holding tokens is harder than holding a widow," but once you change your mindset, everything becomes clear. Using pools for mining instead of simply holding tokens allows you to participate in the growth of both favored tokens and earn additional income through market making — this is true maximization of returns.