Binance Smart Chain's primary liquidity provider platform is PancakeSwap. Following the deployment of your BEP20 token on the BSC network, the next step is to create and add liquidity to PancakeSwap. The liquidity allows for automatic and instant exchange of your tokens without the need to wait for a slow P2P transfer. The V2 version of PancakeSwap's liquidity platform was just released, and it is a fork of Uniswap, a well-known Ethereum exchange.
On PancakeSwap V2, you create a liquidity pool (LP) and then add your newly issued tokens and funds to it. The funds are added in the form of established-value tokens, the most common of which are BNBs. PancakeSwap manages the liquidity pool with the help of a smart contract, which stores new tokens as well as BNBs. The same contract generates LP tokens, which you receive as proof of liquidity ownership in your wallet. The LP tokens (also referred to as Pancake-LP or simply Cake-LP) are used to withdraw deposited tokens and BNBs from the pool contract at a later time. This is usually done once the new coin has gained enough traction and the community has deposited additional tokens into the liquidity pool.
As a result, PancakeSwap liquidity is essential to the success of the BSC tokens. Unfortunately, it is used in the well-known "rugpulls" scam. Even when the community contribution is insufficient, token owners withdraw liquidity funds prematurely by cashing out their LP tokens. As a result, token buyers are left stranded, unable to recoup their investment by selling their tokens. The concept of liquidity locking was created to avoid this scam. The ownership of LP tokens is transferred to a separate time-lock smart contract in this concept, which prevents the withdrawal of PancakeSwap pool funds for a set period of time.
Token creators must now lock Pancake-LP tokens in order to launch legitimate BEP20 tokens. Nobody would buy your token if it didn't have a liquidity lock. As a result, all project owners are scrambling to find viable ways to secure LP tokens in order to launch their new ventures.
Liquidity Locker for PancakeSwap
Writing your own time-lock contract is a more time-consuming and difficult option. Developing and testing such a contract takes a lot of time and effort. Furthermore, investors are apprehensive of this practice. Backdoors in the time-lock contract could allow the lock to be broken early.
Using a reputable third-party locker is the easier option. These lockers use an automated time-lock contract to keep your LP tokens safe for a set period of time. After the lock period expires, you can retrieve your LP tokens back to your wallet.
Mudra is one of the newest and fastest-growing PancakeSwap LP token lock platforms. It stands out due to its features and pricing. It has several unique features for a liquidity locker, such as QR code-based lock certificates. It has a user interface that is easy to use and understand. Liquidity locking is now affordable and accessible to everyone thanks to the platform's low fees. As a result, it has risen to the top of the BSC liquidity-locking platform rankings.
Mudra Locker is the latest product from Mudra Manager, which also includes a token creator for creating BEP20 tokens and a token scanner.