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The inclusion of Yield Farming is another incentive for Liquidity Providers. In order to exploit yield, Liquidity Providers deposit their liquidity provider (LP) tokens in yield farms to earn additional revenue. Rewards can be optimized by moving tokens between protocols.
How does it work:
- Deposit tokens into the MKI liquidity pool.
- Receive LP liquidity tokens in exchange.
- Deposit LP liquidity tokens in a farm containing multiple liquidity pools.
- Receive MKI tokens as a reward.