## Understanding DeFi Liquidity Mining: Your Guide to Passive Crypto Rewards
Cryptocurrency has evolved beyond traditional proof-of-work mining. While Bitcoin (BTC) and other PoW networks still rely on computational power to mint new coins, a different opportunity has emerged in the decentralized finance space. Liquidity mining has become a cornerstone of DeFi ecosystems, channeling billions in assets into decentralized applications. But what exactly is it, and how does it work?
### What Liquidity Mining Actually Is
At its core, liquidity mining is a reward mechanism designed by decentralized