How to play new ideas and breakthroughs in liquid mining?

When it comes to “liquid mining”, there must be some people who are happy and some are worried. Since Compound launched its liquidity mining for governance token COMP on June 15th, in just one month, liquidity mining has exploded in the mining circle, and various liquidity mining have emerged endlessly.

But do you really understand liquid mining? What kind of bottleneck is it now? Where is its future? Next, the editor will speak for you.

First of all, liquid mining is a type of DeFi, because most DeFi projects exist on Ethereum, so liquid mining is also concentrated on the Ethereum platform. As for liquidity, we all know that it is the market liquidity of various tokens. So when liquidity meets mining, the simple understanding is that user A deposits his token (asset) into a project to give users B, C, and D a loan. This is to increase the liquidity of the token; and A deposits the token. This kind of behavior is mining, which can bring rewards for the project token.

So far, the development of liquid mining has the following obstacles:

Source of assets. As mentioned above, most of the liquid mining projects are concentrated in Ethereum, so it is difficult to invest the encrypted assets of non-Ethereum projects. The source of funds is one issue, and the amount of funds is another issue;

Technical threshold. Take the current Ethereum project, Ethereum 2.0 is not easy to say for the time being. In the POW period, due to technical problems such as high GAS fees and difficult wallet management, the threshold for participation is too high for ordinary users;

The gameplay is single. For general users, it is limited to the passive benefits of depositing tokens; for high-end users, governance benefits are also added;

The risk is higher. Once the project is overheated, the income cannot be sustained; or the risks of smart contracts, oracles, black swan risks, etc., are bound to burst and directly threaten user funds.

Of course, if you want to make a breakthrough in liquid mining, you still need to think about its bottleneck. And CEP, the encryption investment agreement has its own set of thinking.

First of all, for users, ensuring the safety of assets is the first priority. Therefore, CEP hopes to integrate the track, inspect the entire liquid mining project, and provide advantageous and safe multiple projects for reference to ensure the safety of funds;

Secondly, CEP can integrate assets. Not only project tokens on Ethereum, but also encrypted assets including BTC can be introduced into liquidity mining through cross-chain technology; at the same time, traditional funds, as the big brother in the asset industry, can also CEP joins the mining track;

Furthermore, CEP will provide users with a simple operation entrance, join the queue of liquid mining, reduce the amount of cognitive learning of users, and expand the user group, making it a truly open finance;

Finally, CEP will provide two modes of mining gameplay, which can be purchased in small quantities, or redeemed & issued, and the gameplay is more diverse.