How Do Liquidity Incentives Influence DeFi Market Growth?

With liquidity incentives becoming a core strategy in decentralized finance (DeFi), how do they drive market expansion? Can rewards in the form of tokens or yield boosts attract more participants, deepening liquidity pools and improving market efficiency? How do these incentives impact user behavior, and are they sustainable in the long run? As DeFi platforms compete for liquidity, will innovative incentive models lead to healthy growth, or could they introduce risks like short-term speculation and liquidity migration?
 
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