🔒Blocked Liquidity

Key points:

  1. The liquidity of the KETCHUP token will be blocked using the service of UniCrypt.

Liquidity is a pool of funds that token developers must create to allow their investors (you, the players) to instantly buy and sell.

Why do we need it?

Without this fund, investors would have to wait for someone else to match their buy or sell order, with no guarantee that the trade would complete at all. This means that every time you wanted to make a transaction you would have to wait for funds to be made.

How is liquidity created?

Liquidity is created by grouping the new token, KETCHUP in our case, with another established token (for example, BNB or a stable coin like BUSD) on an exchange like PancakeSwap.

This pool of funds is deposited on the exchange and the liquidity provider (the developers) receives liquidity pool tokens (LP) in return. These tokens can be used at a later time to withdraw funds from the pool.

Scams, rugpulls and other weird glitches... Why should liquidity be blocked?

If liquidity is not blocked, developers can do what is known as rugpull.

Once investors start buying tokens on the exchange, the liquidity pool will accumulate more and more coins of set value (ex BNB or BUSD). With which, the developers would be able to withdraw this liquidity from the exchange, collect all the money and run away with it.

That is why it is in your interest as a player that the liquidity is blocked. You don't want to risk your money being stolen.

Liquidity is blocked by resigning the ownership of the Liquidity Pool (LP) tokens for a fixed period of time, sending them to a time-lock smart contract. Without ownership of LP tokens, developers cannot withdraw funds from the liquidity pool.

It is now standard practice, one of the factors that differentiates a fraudulent project from a real one.

As a team we are aware of the plague of scams and rugpulls that exist in NFT games, many of which do not have any protection measures that guarantee the safety of the players.

In our project 4% of the total number of tokens corresponds to liquidity. It will be blocked from the moment it is added. In this way the community can be sure that their investment is focused on the maintenance and development of the game.

There are different liquidity blocking services and smart contracts on the market. However, we will use UniCrypt, a company that in 2020 invented the concept of liquidity lock. The Liquidity lock service of UniCrypt is widely used when it comes to crypto projects. It is an industry standard.

The liquidity pool will be safe. We trust that this measure will provide peace of mind to players/investors.

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