One of the biggest risks in decentralized trading is the "rug pull"—where developers suddenly withdraw all the liquidity from a pool, making it impossible for holders to sell their tokens. To protect investors, credible projects use locked liquidity.
What is Locked Liquidity?
Locked liquidity means the developer team has locked their Liquidity Pool (LP) tokens in a time-locked smart contract (like Team Finance or UNCX). This ensures the liquidity cannot be withdrawn for a specified duration (e.g., 1 year, 5 years, or permanently).
How to Verify Locked Liquidity
Don't just take the team's word for it. Always check for:
- Lock Transaction: Look for the transaction hash showing LP tokens being sent to a locker contract.
- Locker Dashboards: Visit the locker platform and search for the token address to see the lock duration and percentage.