DeFi & Yield

What is liquidity mining and how does it differ from staking?

Liquidity mining is a DeFi practice where you deposit a pair of tokens into an automated exchange pool and earn trading fees plus extra protocol token rewards in return. It differs from staking, where you lock a single asset to help secure a blockchain or protocol and earn rewards for that. Liquidity mining carries impermanent loss, the gap that opens when pooled token prices diverge, while staking does not. Both involve smart-contract and market risk, and rewards vary widely with no assurance of profit. Qatobit favours documented, research-led index exposure over chasing yield. See how our methodology works.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.