GK Question

technology hard mcq

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

  1. Yield Farming
  2. Liquidity Mining
  3. Both A and B
  4. 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