The main liquidity provider platform for Binance Smart Chain is PancakeSwap. After you’ve deployed your BEP20 token on the BSC network, the next step is to create and add liquidity to PancakeSwap. The liquidity allows for the automatic and instant exchange of your tokens without the need for a slow P2P transfer. PancakeSwap is a fork of Uniswap, a well-known Ethereum exchange, and it recently released the V2 version of its liquidity platform.
On PancakeSwap V2, you create a liquidity pool (LP) and fill it with newly issued tokens and funds. 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 and BNBs. The same contract also creates LP tokens, which you receive as proof of liquidity ownership in your wallet. The LP tokens (also known as Pancake-LP or simply Cake-LP) are used to withdraw previously deposited tokens and BNBs from the pool contract at a later time. This is usually done after the new coin has gained enough traction and the community has contributed more tokens to the liquidity pool.
As a result, PancakeSwap liquidity is vital to the success of the BSC tokens. Regrettably, it has been employed in the well-known “rugpulls” scam. Even when the community contribution is insufficient, token holders withdraw liquidity funds prematurely by cashing out their LP tokens. As a result, token purchasers are left stranded, unable to recoup their investment by selling their tokens. Liquidity locking was created as a way 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.
Pancake-LP tokens must now be locked in order for legitimate BEP20 tokens to be launched. There would be no one willing to buy your token if it didn’t have a liquidity lock. As a result, all project owners are looking for viable ways to obtain LP tokens in order to launch their new ventures.
Liquid Locker for PancakeSwap
Writing your own time-lock agreement is a more time-consuming and difficult option. Developing and testing a contract like this takes a lot of time and effort. Furthermore, this practice is frowned upon by investors. Backdoors may exist in the time-lock contract, allowing the lock to be broken early.
Using a trusted third-party locker is the easier option. These lockers use an automated time-lock contract to keep your LP tokens safe for a set amount of time. When the lock period expires, you can retrieve back your LP tokens.
Mudra Locker is one of the newest and fastest-growing platforms on the market to lock Pancakeswap liquidity. Features and pricing set it apart. It has a number of unique features for a liquidity locker, such as QR code-based lock certificates. It has an easy-to-use user interface. Liquidity locking is made affordable and accessible to everyone thanks to the platform’s low fees. As a result, it has become the best liquidity locking platform for BSCs.
Mudra Locker is a product of Mudra Manager, which has also released a token creator to create BEP20 tokens with modern tokenomics as well as a token scanner.