What is a liquidity lock?

Rug pulls happen when project developers (or anyone in the project) suddenly withdraws liquidity, leaving investors with worthless tokens. That’s where liquidity locks come in. They're like safety nets for liquidity, and knowing how to check them is crucial. What is a Liquidity Locker? They're kind of like putting a padlock on the cookie jar.

What is liquidity locking (LP) & how does it work?

LPs earn a portion of the trading fees as a reward for providing liquidity. Liquidity locking is a similar approach to token vesting and other locking mechanisms. It increases security for early public investors and traders in newly emerging crypto projects.

How do project owners lock the liquidity pool tokens (LP tokens)?

Lock liquidity: Project owners lock the liquidity pool tokens (LP tokens) using a smart contract on the chosen platform. Verification and monitoring: Investors can verify the locked liquidity by checking the smart contract address and monitoring the status through platforms like Etherscan.