LID Protocol offers protection against crypto scams
3 min read● LID Protocol can help protect DeFi token holders against crypto scams.
● The platform offers a layer of protection that was earlier thought to be impossible.
In recent times, crypto scams have grown exponentially. Thousands, if not millions, of crypto assets holders have had their crypto holdings lost to one crypto scam or another.
While many have been asking the authorities to strengthen the regulations guarding the operations of these crypto firms, there appears to be a solution in sight that could better protect investors from these common scams, especially when they are patient enough to pay attention to the intricacies of the token they are investing in.
One easy and sure way investors could better protect their investments would be to look out for tokens that have a locked liquidity platform.
A locked liquidity platform operates solely for the benefits of the Uniswap holders. On this platform, users would be able to deposit liquidity in exchange for an extra layer of protection. This layer of protection acts in the mould of an insurance for its holders.
One of the leading locked liquidity platforms is the LID Protocol that offers a sense of protection that is unmatched.
How LID Protocol works
LID Protocol, also known as Liquidity Dividends Protocol, offers a “Proof of Liquidity” to its holders. This proof of liquidity helps to solve issues pertaining to scams and also liquidity issues that were commonly associated with Uniswap.
LID Protocol’s proof of liquidity works in such a way that developers of a token would be unable to withdraw the liquidity on their tokens(projects) for a period of time.
The proof of liquidity ensures that would-be scammers would find it difficult to be able to scam investors off their tokens or their money as their liquidity would be locked in to the developed token. This locked liquidity would be geared towards the development of the platform while also promoting innovation on the platform.
In essence, investors can be rest assured that they are investing in a secure and legitimate token that would not suddenly pull their tokens or money. Due to the fact that liquidities cannot be cashed out prematurely, investors would feel more confident to invest more in the tokens which invariably would increase the worth of the token.
LID Protocol has also announced a new product that it developed with the aim of combatting rug-pull scams. The product is called LIFTOFF. The new product reinforces the mother project goal of providing a safe and secure DeFi space for not only investors but also for all market players in the industry.
The Protocol still has LID DAO in the offing. The LID DAO currently has 30 million tokens of LID available to the DAO. The DAO would ensure that the LID Protocol remains decentralized and also free from any form of any external interference.
All of this partnership and projects being carried out by the LID team have shown that the Protocol is determined to remain at the forefront of groundbreaking technology in the protection of investors. And as such, the Protocol will continue to enter into different strategic partnerships while at the same time developing groundbreaking projects that can help it achieve its aim.
