> For the complete documentation index, see [llms.txt](https://whitepaper.mocossi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.mocossi.com/moconomics/token-distribution/lp-farming.md).

# LP Farming

Liquidity refers to how easily $MCOS can be converted into ADA. A low liquidity level means that the market is volatile, making it easier for a few individuals to manipulate prices. Therefore, we see the need to maintain a high liquidity rate that can produce several advantages (\*):

* High liquidity and high trading activities are more likely to facilitate an equilibrium price that is acceptable to most people.
* High liquidity ensures $MCOS’s price is stable enough to withstand large orders.
* High liquidity allows for greater accuracy in technical analysis since price and chart formation is more refined and precise in a liquid market.

In order to achieve the aforementioned liquidity rate, we will reserve 5% for LP farming rewards to incentivize our liquidity providers.

Source:

*(\*):* [*https://b2broker.com/news/cryptocurrency-liquidity-and-finding-the-best-liquidity-provider/*](https://b2broker.com/news/cryptocurrency-liquidity-and-finding-the-best-liquidity-provider/)