Business

What are reflection tokens and how do they work? According to Cointelegraph




farming productivity, liquidity mining, and staking has become common practice in the crypto market due to the significant growth the DeFi ecosystem has witnessed in recent years. These features allow users to earn interest on their crypto holdings by locking them up as deposits for specific periods of time.

The concepts sound appealing but there is a big risk: potential decline in the valuation of locked assets. In other words, the user will see a loss in US dollars if the value of the asset decreases during the lock-up period.

Reflection token illustration
weekly price chart. Source: TradingView

transaction tax

Cheat

Uneven profit