Liquidity Mining means providing liquidity by contributing LP tokens into a pool to earn rewards. By creating the LP tokens on decentralized exchanges (such as PancakeSwap) liquidity providers allow others to trade on DEXes.
The providers collect a proportion of the fees paid by users who use that pool to swap between tokens. However, at the same time, the contributors can earn additional rewards for providing liquidity - and that’s the exact case with GamerHash as it’s needless to say that the additional rewards we provide very generously compensate for the potential impermanent loss!
It’s important to keep in mind that Liquidity Mining usually offers higher APRs than staking and the gains are potentially much higher, however, everyone should be aware of the important factor involved in liquidity providing, which is the Impermanent Loss that occurs when the price of assets changes compared to when they were first deposited.
The Liquidity Mining is available only on the Binance Smart Chain, so if the user has their GHX tokens solely in the ERC-20 standard, they’ll have to bridge them.
To learn more about GHX liquidity staking, check out one of our Medium posts: