On Liquidity Lock and Rug Pulls.
Probably one of the most taboo phrases to see in DeFi is “rug pull”. This sends shivers down anyone’s spines, and no one wants to be caught in a rug pull. Neither do we.
The most frequent two questions we get asked constantly are important factors in helping understanding the safety of any DeFi platform.
Let us address them now.
The answer as of now is no. But within a week of launch, it will be locked for a period of six months. Instead of burning the LP tokens, we decided to take the approach of utilizing a timelock contract to lock the LP tokens for a period of six months. The reason behind this is actually quite rudimentary — PrivacySwap was created as a way for us as CyberSec professionals to propagate privacy and security in the blockchain and DeFi space. This is important to us as we deal with CyberSec outside of blockchain and crypto and we know exactly why it is important to everyone regardless of how we use the Internet. As such, this project is funded by ourselves with our own hard earned money. We find it very painful to burn our money, never to see it again. As such, we had a choice between six months or a year of locking the LP tokens in a timelock smart contract and we felt that between six months and a year, six months is a very realistic timeframe to build PrivacySwap and have it standing on its own. So the conclusion we arrived at is that we will timelock our initial LP tokens for a period of six months, and after the six months are up, if we need to remove the liquidity for extra funds or for other reasons, that we will do so only in a careful manner so as not to cause too huge of a movement in price and/or liquidity.