Top Liquidity Lockers List
The blockchain network has become so large over the years that a new cryptocurrency is created every minute. The technology that has so much to offer has also attracted con artists who have found multiple methods of scamming users on the network – rug pulls being one of the most popular methods. This scam is orchestrated when a project owner drains the funds of the liquidity pool of his token created on a decentralized exchange like UniSwap or PancakeSwap (where investors can buy and sell the token instantly). Essentially, the scammers create a high value liquidity pool and engage aggressively to attract more and more investors. The rug pull happens the moment that the scammer uses his liquidity provider tokens to instantly remove all the liquidity of the pool and disappears with it. The solution that investors are now actively demanding that projects use in order for them to feel safe investing in them? Liquidity locking.
What Is a Liquidity Locker?
It is essential for a new token launch to form a liquidity pool on an AMM (Decentralized Automated Market Makers) like PancakeSwap or Uniswap in order for their token to be tradable. In exchange for providing liquidity to the pool, users receive liquidity provider tokens. Project owners hold the majority of the pool’s LP tokens because they funded the original liquidity of the pool. Liquidity pools are at risk when a project owner holds most of the project’s LP tokens because this means he can withdraw and run away with the liquidity whenever he wants.
Liquidity lockers are a decentralized safety mechanism that prevent project owners from running away with the pool’s liquidity. An LP locker is a smart contract that stores LP tokens for a set amount of time, completely immutable by the team of the liquidity locker provider. Liquidity lockers help project owners build trust with their communities. Investors in a growing number now expect to see that a project has liquidity locked before acquiring their tokens.
Why Is Liquidity Locking Essential?
Liquidity lockers benefit both investors and developers. It protects investors from “rug pulls” that leave them tottering up massive losses. Locking boosts the token’s legitimacy and investor confidence. Even when a project owner has no malicious intent and the project asserts sufficient legitimacy on its own, liquidity lockers help prevent the LP from being hacked and guard from human error as well. It is important to note that storing LP in a multi signature wallet or in a self made locker is not an adequate alternative.
Best Liquidity Lockers of 2023
After comparing many options available in the market, we have drawn up this comprehensive list of the best liquidity lockers of 2023.
A variety of decentralized services are available through the UNCX Network, a multi-chain decentralized platform. Particularly is liquidity locking service, which enables developers to permanently lock liquidity on AMMs like Uniswap. The idea of liquidity locking was developed by UNCX in June 2020 and they are currently the largest liquidity lockers in the space with a TVL of 240 million.
The UNCX liquidity lockers come with many great features, particularly lock splitting, incremental locks, and ownership transfer. UNCX is known for having the most trusted liquidity lockers in the space and not having had any vulnerabilities on record. This coupled with their reputed token vesting service and reputation for great customer service, elevates them to the position of best overall liquidity locker available. They are available on Ethereum, BSC, Polygon, Arbitrum & more.
Mudra Liquidity Locker is for Binance Smart Chain. It enables you to instantly lock liquidity pool tokens,withdraw them once the lock has expired, and add more tokens to the lock. In contrast to most platforms, it has the lowest fees and does not compel developers to use their utility tokens. The user-friendly interface of Mudra Liquidity Locker is tailored to the needs of developers. The platform’s effectiveness and usability are aided by basic but essential features like the ability to distinguish between a token address and an LP address. The Mudra ecosystem is strong overall, offering a wide range of tools for investors and cryptocurrency developers (BEP-20 token generator, PancakeSwap liquidity configuration).
Owners of tokens have the ability to generate a verified lock certificate using a QR code, which they can then share on the token’s website and social media channels.
With its foundation in the Binance Smart Chain, DeepLock is a superb liquidity locker that enables developers and teams to lock up any LP tokens from PancakeSwap that are based on the BEP-20 standard, shielding investors from DeFi rug pulls.
In addition to the liquidity lock feature, DeepLock also includes a decentralized & rug-proof launchpad, automatically locked liquidity, and a vesting feature that enables developers to put their predetermined locking schedule into practice.
A decentralized financial network called DeFi yield protocol provides a number of tools and services, such as yield farming, staking, and liquidity lockers. Developers can lock liquidity across a number of AMMs, including SushiSwap, Balancer, Uniswap, and PancakeSwap, thanks to the DYP lockers, which increases investor confidence in the project.
Developers are not charged anything by DYP Locker to lock liquidity.. When the locking period has passed, the liquidity locker releases DYP and the locked LP tokens to the recipient wallet. This implies that when developers unlock their liquidity, they receive the locked DYP back. As a relatively new participant in the DeFi yield protocol, DYP Locker has not yet locked a sizable number of LP tokens.
What is the best locking period for liquidity pools?
Ideally, a year or three is sufficient for locking the pools. Additionally, this would give your coin plenty of time to develop to a size where investors will pool their money, and not need to worry about the owners pulling a fast one.
What amount is ideal for liquidity locking?
Investors join the liquidity pool hoping to make more money than they initially put in. Therefore, it is best to lock up around 80%-90%. (60% is the minimum required for credibility).
Does the token in the liquidity locker undergo any changes?
Liquidity lockers are meant to be completely decentralized and smart contracts are immutable. This means that once a lock is set, no one can change the details and withdraw the tokens until the unlock date. This is a great way to prevent funds from being hacked.
How are liquidity pool tokens locked?
Simply go to the liquidity locking platform of your choice
Source: https://coingape.com/best-liquidity-lockers/