Lock Liquidity

Lock Liquidity #

When we add liquidity to decentralized exchanges, we will receive corresponding LP tokens.

These LP tokens serve as the only proof needed to remove liquidity, and whoever holds the LP tokens in their wallet can withdraw from the liquidity pool.

Locking liquidity means entrusting the LP tokens to a dedicated locking contract, which allows users to retrieve the LP tokens only after the unlock time has elapsed, and then withdraw the liquidity from the pool.

Locking liquidity helps to enhance the security of your project and attract more investors.

A video tutorial has been uploaded to YouTube, and you can subscribe to the Fatsale channel to receive updates.

1. How to find LP tokens? #

Taking the PT token used in the presale tutorial as an example, the public chain where the PT token is located is BSC-Test, and the token contract address is 0x3Bc27266D5CB40578fdbAaAD0b2f869d87666666. Below are several common methods for finding LP tokens contracts:

1. Searching in Fatsale #

If your token was issued through the Create Token function in Fatsale, then in the Token Console, you can see the liquidity address of the token.

If you want to lock on the Fatsale platform, you can also directly enter the token contract on the lock page and the staking tool will automatically search for possible LP addresses.

For example, on the Lock Pool page, when you enter the token contract address for PT in the input box, which is 0x3Bc27266D5CB40578fdbAaAD0b2f869d87666666, below will display your holdings of PT tokens and also search for potential trading pairs for PT token. By clicking on the Lock Liquidity button above, the input box’s content will automatically change to the LP token contract address, and the information below will also update to show your holdings of LP tokens.

2. Searching in Block Explorers #

In the blockchain explorer of the BSC testnet, search for the contract address of the PT token:

Click on Token Tracker and switch to the Holders tab to view the list of token holders. The quantity of tokens in the liquidity pool is generally high and will be listed among the top holders in the list.

Lines marked with a special symbol represent smart contract addresses. We can click on each one and check the name of the smart contract. The address with the letters LP in its name is the liquidity pool address that we are looking for.

Of course, there are some smart block explorers that can directly display the names of smart contracts, saving us the trouble of searching for them one by one. For example:

3. Search in K-Line Tools #

Searching Token Contract in DexTools:

Please check the K-line page, and you will see the Pair address at the top of the page. This is the corresponding liquidity pool address, you can click to copy it.

Other K-line tools are similar, and the liquidity pool address can be found on the corresponding K-line page.

2. Lock LP Tokens #

Once we have found the LP token, we can lock it in the Lock Pool page. Input the LP token contract and its basic information will be displayed below.

Some information to note:

  1. Pair: If the input is a standard LP token contract, the trading pair information will be displayed, which corresponds to the two tokens in the liquidity pool.

  2. Token Name: The token name is usually named as Exchange Name + LP. If you find that the token name is different from yours, please do not panic as it is a normal phenomenon.

  3. Balance: This balance represents the balance of the LP token you hold. It is generated by the exchange’s factory contract when adding liquidity to the pool, and the quantity is calculated by the factory contract. It is not related to the balance of the token you created, so please do not mistake it.

  4. Lock Contract Address: During the locking process, your locked tokens will be transferred from your wallet to the lock pool contract, so it is necessary to ensure that the transfer of locked tokens will not be taxed. Generally, there is no need to pay attention to this option when locking LP tokens because LP tokens are 0 taxed. Only when locking other types of ERC20 tokens, you need to check if there is a transfer tax rate and add the Lock Contract Address to the tax whitelist to ensure that the transfer is 0 taxed.

After confirming that the information is correct, proceed with the locking operation, which is divided into two steps:

  1. Approve: Approve the contract to operate your LP tokens.

  2. Create new lock: After completing the authorization, the Create new lock button will be displayed. Clicking on it will launch the wallet plug-in. Upon completing the transaction, the lock will be successfully created.