Permanently Locking Liquidity

Projects, especially memecoins, can choose to permanently lock liquidity forever (you lose your liquidity forever) to help raise community confidence, but can still earn fees on the locked liquidity.

If the project wants to permanently lock liquidity in the Memecoin Pool, they should ideally lock the liquidity BEFORE the pool starts trading, so that swap fees from locked liquidity are captured the second trading starts.

In a scenario where:

  • The pool started trading - t0

  • Liquidity gets deposited to the pool by the project, but not locked - t1

  • Subsequently, that liquidity is permanently locked by the project - t2

The project will not be able to claim swap fees earned from t1 to t2, since fees from t1 to t2 are assigned to the LP token before the LP token gets permanently locked. When the LP token gets locked, the earlier fees are locked along with it.

The project will only be able to claim swap fees from locked liquidity starting from t2.

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