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How to lock liquidity on PancakeSwap
Smart contracts were implemented on the Ethereum (ETH) blockchain network, ushering in a new era of cryptocurrency tokens. It has, however, been temporarily dimmed by high transaction costs and slow network speeds, prompting forks such as Binance Smart Chain (BSC) to step in and fill the void. As a result, the number of projects launched on the BSC network has increased. To begin, you must first deploy your BEP20 token on the BSC network. The next step should be to list your token on a DEX (Decentralized Exchange). DEXs act as automated market makers (AMMs), facilitating instant trading of your token without the requirement for a listing or P2P (peer-to-peer) transactions. PancakeSwap V2 is now the most popular liquidity provider platform on BSC.
To add liquidity to a decentralized exchange (DEX) such as PancakeSwap, you construct a liquidity pool using the minted tokens and the pegged token. The pegged token is a valuable token, often BNBs. These liquidity pools are controlled by a smart contract; additionally, you receive LP tokens in your wallet as proof of ownership of the underlying liquidity. You can then use the LP (for PancakeSwap, these are called Cake-LP) tokens to withdraw the tokens and BNB you put in the pool contract.
The BSC token ecosystem is primarily reliant on the liquidity provided by PancakeSwap. Regrettably, the decentralized nature of these liquidity pools also facilitates a type of fraud referred to as "rugpulls." Token holders prematurely sell their LP tokens in order to obtain liquidity dollars. This traps token purchasers, leaving them unable to sell and recoup their initial investment. Liquidity locking is a notion that was created to protect investors from falling for this scam. To prevent liquidity money from being taken from the PancakeSwap pool, the owner’s wallet temporarily transfers ownership of LP tokens to a time lock smart contract.
This concept has grown in popularity, and developers must now lock Cake-LP tokens prior to marketing legitimate BEP20 tokens. Without a liquidity lock, no one will ever buy your token. All new project owners have made LP token security a high priority.
PancakeSwap's liquidity can be protected in a variety of ways.
You can build your own time-lock contract and send the LP tokens to it. However, developing such a time-lock contract requires additional time and work, and you risk mistakenly leaving out any bugs, which could result in the loss of all liquidity money. Investors are also particularly skeptical of this method, as backdoors in the time-lock contract may enable early unlocking of the LP tokens.
If you prefer to keep things simple, you may want to consider using a reputable third-party locker provider. To safeguard your LP tokens, these lockers employ a time-lock contract that automates the process of locking. Following the expiration of the lock period, you will be able to withdraw the LP tokens to your wallet.
Unilocker is a newly launched PancakeSwap liquidity lock platform that is rapidly growing in popularity. Its features and pricing set it apart from the competition. Numerous innovative features, such as one-click buttons for standard lock percentage and duration, were pioneered in this liquidity vault. It features a straightforward and simple-to-use user interface. The platform is unrivaled in terms of pricing. As a result, it has become the most widely discussed BSC liquidity locking platform.