# Overview

## What is Liquidity Farming?

Liquidity Farming, or [Liquidity Mining](https://www.coinbase.com/learn/your-crypto/what-is-liquidity-mining) is one of the first groundbreaking innovations to empower DeFi, enabling everyone (known as Liquidity Providers) to supply cryptocurrencies into liquidity pools and receive compensation based on their share.

Understanding Liquidity Farming and Providing Liquidity requires a grasp of decentralized exchanges ([DEXs](https://academy.binance.com/en/articles/what-is-a-decentralized-exchange-dex)) and automated market makers ([AMMs](https://academy.binance.com/en/articles/what-is-an-automated-market-maker-amm)), which facilitate the process.&#x20;

Liquidity Providers earn compensation through transaction fees and token rewards, which can reach unparalleled highs during periods of market volatility. On the downside, they may face risks such as [impermanent loss](https://academy.binance.com/en/articles/impermanent-loss-explained), where the value of their deposited assets decreases compared to holding them outside the pool. Therefore, Liquidity Farming remains mostly overlooked due to its complexity and potential risks.

## What is Krystal?

> Our mission is **to revolutionize the blockchain industry by making liquidity farming not only accessible but also profitable for everyone**.

<figure><img src="https://1670507844-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAmo4vXpjHKQh32RAZ0AA%2Fuploads%2FpdfPZqn9UNUJ2we4dXVU%2FTwitter_Header_Banner_2024_1500x500px.png?alt=media&#x26;token=30be0738-7479-45cd-9347-9316fc518ae4" alt=""><figcaption></figcaption></figure>

Krystal is a **Decentralized, Multichain Liquidity Farming Agent** that enables users to earn yield by providing liquidity across various DEXs and blockchains.&#x20;

Leveraging AI agents, Krystal continuously scans for the highest yields, does in-depth analyses of liquidity flow and farming performance, and automates the entire process through optimized strategies and vaults. This ensures users maximize their farming rewards with a seamless and secure experience.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.krystal.app/overview.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
