How Can Investors Identify Potential Rug Pull Risks in a DeFi Project? ▴ Learn

How Can Investors Identify Potential Rug Pull Risks in a DeFi Project?

Investors should check if the project's liquidity is locked, meaning developers cannot withdraw it for a set period. Audited smart contracts provide a layer of security and transparency.

A lack of transparency from the development team (anonymous founders) is a red flag. Extremely high, unsustainable Annual Percentage Yields (APYs) often signal a scam.

How Can Investors Detect a Potential ‘Soft Rug’ Pull versus a ‘Hard Rug’ Pull?

What Is the Risk of “Rug Pull” in the Context of Providing Liquidity to a New Token Pair?

How Does a “Rug Pull” Differ from a “Pump and Dump” in the Crypto Space?

What Certifications or Qualifications Should One Look for in a Smart Contract Auditor?