The annualized returns shown on mining pages are very high, but where do the returns actually come from?
First, a definition: A common approach is to provide liquidity and receive LP tokens, then stake those LP tokens in a mining contract and claim rewards in proportion to your share.
How it works: Reward tokens come from newly issued tokens. If most people who receive rewards sell them, the token price usually comes under pressure, and the annualized return measured in terms of the token’s price falls accordingly.
$SUSHI is SushiSwap’s token. SushiSwap got its start in 2020 through liquidity mining.
If you don’t understand something, it’s best to be cautious. Practicing with a small amount is a safer approach.
#SUSHI