WAXHISPANO

02/16/2024

We are proud to announce our latest innovation — a liquidity locker built on the WAX blockchain. This tool is meant to increase trust and transparency in the WAX space, laying the foundation for a thriving DeFi ecosystem.

How Does It Work?

If you’ve ever used a decentralized exchange before, then you’re probably familiar with the concept of liquidity. In most cases, when you provide liquidity for an asset, you receive a token that represents your ownership of that liquidity. This allows you to redeem your assets if you ever decide to remove your liquidity in the future.

What this new tool does, is allow you to lock up those “ownership tokens” in a smart contract, for the amount of time that you specify.

Why A Liquidity Locker?

Have you ever heard the term “rug pull” before? Most likely, you have. The most common form of a rug pull in the crypto space is the following scenario:

• New project launches a token.
• Project creates a liquidity pool for their token + Ethereum.
• Community feels safe since they see a large amount of liquidity, so they start buying the token.
• Token price goes up, and now there is a bunch of Ethereum in the liquidity pool.
• Project removes all of their liquidity from the pool — now they have a huge pile of ETH, and you’re stuck holding the bag of a worthless token that you can’t even sell, because there is no liquidity anymore.
• Congratulations, you just got rugpulled.

Our liquidity locker solves this problem. Project owners can time-lock their liquidity in WaxDAO’s open source smart contract for up to 5 years at a time.

If a new project comes along and you’re thinking about buying into it, you should first check and see if they have any locked liquidity on WaxDAO. If the answer is no, then you have no guarantees that they won’t pull the rug out from under you, so proceed with caution.

What Exchanges Are Supported?

Currently, our locker supports 2 of the 3 leading exchanges on WAX (TacoSwap and Defibox). Unfortunately, Alcor does not tokenize their liquidity positions at this time, so their LP can not currently be locked.

If you are planning on locking liquidity, we would highly recommend going with TacoSwap. It is worth noting that we have spoken with Alcor, and they do have plans to eventually figure out a solution to make their liquidity positions compatible with tools like ours — however, there are no confirmed details about this yet, and no guarantees that it will happen.

Join Us In Securing The WAX Ecosystem

We invite all projects and Waxians to explore the benefits of the Liquidity Locker and join us in this crucial step towards a more secure and trustworthy DeFi ecosystem. With the Liquidity Locker, WaxDAO is not just offering a tool; we’re offering peace of mind.

For more information on how to utilize the Liquidity Locker for your project, visit our website at waxdao.io.

WaxDAO Releases Liquidity Locker For The WAX Blockchain was originally published in waxdao on Medium, where people are continuing the conversation by highlighting and responding to this story.