What Is a “Rug Pull” in the Context of a Liquidity Pool?
A "rug pull" is a malicious maneuver where the developers of a new token or DeFi protocol suddenly withdraw all the liquidity from the pool. This leaves the investors holding worthless tokens that cannot be traded.
It is a form of exit scam, often facilitated by unaudited smart contracts with "admin keys" that allow for such withdrawals.