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

A rug pull is when token developers drain the liquidity pool, leaving LPs with a worthless token and a total loss.
Greeks.Live31.10.25

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

A "rug pull" is a malicious maneuver where the developers of a new token withdraw all the liquidity from the pool, effectively stealing the deposited assets, typically the more valuable pairing asset like ETH or a stablecoin. This leaves the liquidity providers (LPs) holding a now-worthless new token.

This risk is highest in pools with newly launched, unaudited, or anonymous projects.

What Is a “Rug Pull” in the Context of a Liquidity Pool?
What Is a ‘Rug Pull’ and How Is It Executed in a DeFi Protocol?
How Does a Vesting Schedule Mitigate the Risk of a Rug Pull?
How Does a “Rug Pull” Differ from a “Pump and Dump” in the Crypto Space?

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