Each day, hundreds of new cryptocurrencies, or altcoins, are launched on a variety of blockchain networks, including Ethereum and Binance Smart Chain (BSC). Unfortunately, a substantial number of them are perpetrated by scammers seeking to defraud unsuspecting investors. Rugpull is the most well-known scam in the cryptocurrency world today. This scam operates in a fairly straightforward manner. Token developers must establish liquidity on decentralized exchanges such as UniSwap or PancakeSwap in order for investors to instantly buy and sell their tokens. To entice buyers, scammers create tokens and add high-value liquidity pools. When investors begin purchasing tokens from such dubious projects, the liquidity pool’s value increases. The developers then withdraw the entire balance of the liquidity pool and flee, leaving investors holding worthless tokens.
With a liquidity lock, token developers eliminate the potential for such scams. By transferring the liquidity pool or LP tokens to a time-lock smart contract, the developers waive their withdrawal rights. As a result, a liquidity locker benefits not only investors but also token developers, who can establish the legitimacy of their project.
The concept of liquidity locking has resulted in the creation of a number of platforms that provide this functionality. All of these platforms, however, charge exorbitant fees and are extremely inconvenient to use. The market’s newest entrant is Mudra’s PancakeSwap Liquidity Locking platform for the BSC network. Despite being young, Mudra Liquidity Locker has garnered considerable interest from the cryptocurrency community due to its mission to liberalize the practice of securing liquidity and promoting legitimate tokens. Within weeks, it had secured liquidity for over 1000 projects.
It enables you to instantly lock liquidity pool (LP) tokens, withdraw them when the lock expires, and increase the locked amount with additional tokens. You will pay the lowest fee if you use Mudra to lock in liquidity. You can transfer ownership and extend the duration of the lock without incurring additional fees.
Token creators can generate a verifiable lock certificate in the form of a QR code and distribute it via the token’s website and social media channels. Mudra Liquidity Locker’s user-friendly interface places a premium on developer experience. Simple but critical features such as the ability to distinguish between token and LP addresses contribute to the platform’s efficiency and intuitiveness. Its strength is also derived from the Mudra ecosystem as a whole, which comprises a comprehensive suite of products for cryptocurrency developers (BEP-20 token generator, PancakeSwap configurator) and investors (token research tool, token discovery tool).
With the advent of blockchain networks such as BSC, the entry barrier for new innovative cryptocurrency projects has been significantly reduced. As a result, new cryptocurrency investment opportunities have been created for the general public. However, rogue developers have flooded these networks, allowing them to be used for scams and money theft. Liquidity locking is the bare minimum level of assurance that an investor should expect from a legitimate project today. Mudra Liquidity Locker has posed a significant threat to established platforms such as Unicrypt due to its game-changing features and pricing. Mudra has lowered the bar for developers of cryptocurrency projects seeking legitimacy and made liquidity locking affordable and accessible to everyone.