Mercenary Capital
Author: Sidharth
As the name suggests, mercenary capitals are often provided by investors who strive to make substantial profits within a short duration of time via incentive programs being conducted on various exchanges and platforms.
In order to incentivize investors, AMM (automated market makers) creates yield farming and liquidity mining. It is a win-win situation since these programs bring forth liquidity to the platform while rewarding the investors in form of tokens.
One of the biggest short comings of such programs is at the end of the program, the platform experiences huge short-term selling pressures. This occurs when the investors cash out their mercenary capitals from such pools.


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