How Does Locking Liquidity Prevent a Rug Pull?

Locking liquidity means the tokens provided to the liquidity pool are held in a time-locked smart contract, making them inaccessible to the developers for a set period. This prevents the project creators from suddenly removing the funds and executing a rug pull.

A reputable project will publicly demonstrate that their liquidity is locked, often using a third-party service, to build investor trust and signal long-term commitment.