Answer2: Liquidity baking contracts are used by tzBTC to provide liquidity for their APY (annual percentage yield) rewards. This allows users to stake tzBTC tokens and earn rewards for providing liquidity to the platform. The liquidity baking contracts are used to provide a secure and reliable way for users to stake their tokens and receive rewards for their participation. This helps to ensure that the APY rewards are consistent and reliable for users. Additionally, the liquidity baking contracts also help to ensure that the tzBTC tokens remain secure and are not subject to manipulation or other malicious activities.
