Locking liquidity makes the funds immovable until they are unlocked . This means that a certain percentage of the asset has been locked and can not be withdrawn by the developers which give investors a sense of security against their investments. Liquidity is locked using time-locked smart contracts.
Read moreWhat is liquidity lockup time?
Lock-up periods are when investors cannot sell particular shares or securities . Lock-up periods are used to preserve liquidity and maintain market stability. Hedge fund managers use them to maintain portfolio stability and liquidity. Start-ups/IPO’s use them to retain cash and show market resilience.
Read moreCan I redeem locked staking Binance?
Locked Staking FAQ. About early redemption: Users can choose to redeem in advance . After choosing early redemption, the principal will be returned to the spot account, and the distributed interest will be deducted from the refunded principal.
Read moreWhat does Locked mean in Binance?
Locked Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network . For more on staking, please refer to Binance Academy.
Read moreWhy are my tokens locked on Binance?
The term token lockup refers to a specific period of time in which cryptocurrency tokens cannot be transacted or traded . Typically, these lockups are used as a preventive strategy to maintain a stable long-term value of a particular asset.
Read more