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GK Question

technology hard mcq

Which DeFi mechanism allows users to earn yield by providing liquidity to trading pairs?

Yield Farming
Liquidity Mining
Both A and B
Neither

Answer: Both A and B

Yield farming/liquidity mining rewards users with tokens for providing liquidity to DEX pools. Critical DeFi incentive mechanism with impermanent loss risks.

Topic Digital Currencies: DeFi

Exam Relevance Banking, UPSC, SSC

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