Liquidity Pool Lock

What is Locked Liquidity

Liquidity is locked using time-locked smart contracts, preventing funds from being moved until they are unlocked. This provides investors with a safety net, as a portion of the asset is safeguarded and cannot be withdrawn by the developers.​

How locked liquidity works

The locking of liquidity refers to the situation in which tokens or cryptocurrency are held in a smart contract or liquidity pool, such that they are unable to be moved or traded for a certain amount of time. This action is taken to help ensure the token's price is stable and secure, as well as to prevent sudden increases or decreases in its supply from causing sharp fluctuations.

Benefits of Locked Liquidity

The locked liquidity of a token provides many benefits to both investors and the venture. These include enhanced steadiness of the token's price, increased dependability in the venture, and improved immunity to market manipulation. This makes the token more appealing to investors, who are more likely to invest if such protections are in place. Moreover, the locked-in supply of the token allows for more accurate long-term planning, providing an added layer of stability.

Investors can have more assurance in the future outlook of a project by locking tokens in a smart contract or liquidity pool, while the project can be shielded from the effects of sudden shifts in supply and demand.

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In order to access the locked liquidity on Unicrypt, click here.​