Liquidity mining is a decentralized finance mechanism that allows participants to provide some of their crypto assets to various liquidity pools, from which they’re rewarded with tokens and fees.

How to Earn from Liquidity Mining?

Zoomex offers a variety of liquidity pools based on the Automated Market Maker (AMM) model. Each pool consists of a pair of tokens.

By depositing tokens into Zoomex's liquidity pools, you can participate as a liquidity provider. When trades take place within the pool, a portion of the trading fees contributes to your earnings.

Advantages of Liquidity Mining on Zoomex

1. Leverage Support

With leveraged liquidity mining, you can add up to 5x leverage to maximize your returns. Reinvestment is available whenever your earnings exceed 1 USDT.

2. Automatic Rebalance

For a liquidity provider, if you've chosen to add a pair of tokens, the system will automatically process conversion to ensure that the two tokens are of equal value when they're added to the liquidity pool. If you choose to add a single token, the system will automatically convert half of its value to another token in the pool.

3. Low Slippage

Our liquidity pools offer the advantage of low slippage, ensuring quicker transaction times for token swaps.

Potential Risks

Zoomex's Liquidity Mining is not a risk-free product. Liquidity provision is subject to impermanent loss, and the yield amount isn’t guaranteed.

1. Impermanent Loss

With liquidity mining comes the risk of impermanent loss, a phenomenon that occurs due to price changes in the underlying assets.

2. Liquidation Risks With Leverage

Leveraging of positions naturally comes with increased risk of liquidation, although liquidation risk is lower with liquidity mining as compared to derivatives contracts. In this case, you may add more USDT to lower your leverage in order to avoid liquidation.