Liquidity mining is a term used in decentralized finance (DeFi) applications where users supply liquidity to decentralized financial applications and receive rewards for doing so. In the context of Uniswap, liquidity mining refers to users (Liquidity Providers, or LPs) supplying both assets to a given trading pair market so that the protocol can execute trades.
Whenever liquidity is deposited into a pool, special tokens known as liquidity tokens are minted to the Liquidity Provider’s address, in proportion to how much liquidity they contributed to the pool. These tokens are a representation of a Liquidity Provider’s contribution to a pool. Whenever a trade occurs, the 0.3% fee is levied and is distributed pro-rata to all Liquidity Providers in the pool at the moment of the trade. The user is able to claim the fees when they take their assets back from the protocol.
The Xdef Geyser distributes Xdef tokens from the ecosystem fund to those who provide liquidity on Uniswap V2. The more liquidity you provide, and for longer, the greater share of the Xdef pool you receive.
The Xdef pool in the Geyser unlocks gradually over time, and stakers receive share over the unlocked Xdef over time.
The basic staking flow is:
Xdef into Uniswap V2
UNI-V2 LP Tokens
3. Stake those
UNI-V2 LP Tokens in the Geyser
That's it! Once you've deposited staking tokens, you can check your current stake and reward amounts using the Geyser interface. You can add more staked liquidity whenever you want and there is no minimum lockup period. You receive your share of the Geyser pool when you unstake.