Liquidity mining

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Liquidity mining is when a user provides assets to a liquidity pool. Liquidity mining programs incentivize liquidity providers to come to their pools by providing tokens and fees. In 2020, Compound kicked off DeFi Summer and the concept of liquidity mining by giving an estimated 2,880 COMP tokens per day to borrowers and lenders on the platform.[1] This program incentivized liquidity providers and borrowers.