Locked liquidity means a project’s LP tokens (its liquidity on a DEX) are secured in an immutable contract for a set time. In practice, this prevents the developers from suddenly withdrawing the pool of funds, which is a common rug-pull scam. By locking LP tokens in a timelock contract, projects signal trustworthiness: investors know the team cannot drain the liquidity overnight. Locking liquidity “ensures that these funds remain available for trading, protecting investors from scams”. In short, locked liquidity is a safety fuse for any token. Why Locked Liquidity Is Important For developers, locking LP builds trust and stability. It
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