Liquidity mining as a phenomenon has given a significant impetus to the DeFi ecosystem back in the memorable ‘DeFi summer’ of 2020. The concept is simple: liquidity providers are rewarded with the protocol tokens to compensate for the risk of impermanent loss they are running, locking the system in the positive feedback loop: more liquidity, more traders, more fees, more valuable protocol token attracting yet another set of market makers, etc.