Staking or Farming
Staking and liquidity farming are two different ways users can expect to earn rewards from holding your token.
Staking
Staking is the process of holding a certain amount of a particular cryptocurrency in designated pool, removing the tokens from the circulating supply available on exchanges. In return for providing this service, stakers are rewarded with additional tokens that accrue over time.
Liquidity Farming
Liquidity farming, also known as liquidity mining, is the process of providing liquidity to a decentralized exchange (DEX) in exchange for rewards. By adding cryptocurrency to a DEX’s order book, liquidity providers (LPs) enable users to buy and sell the cryptocurrency easily and at a fair price.
LPs are rewarded with a share of the DEX’s trading fees and with a special reward token (usually your project token) for their contribution to the DEX’s liquidity. Liquidity farming is commonly used in decentralized finance (DeFi) platforms to incentivize users to provide liquidity to various financial markets.
Unvest’s Staking Pool Creator allows users to create both staking pools and liquidity farming pools. Set your project token as the staking token to create a regular staking pool, and set an LP token or liquidLock token as the staking token to create a farming pool.