The post Cetus Introduces Permanent Liquidity Lock Feature to Support Long-Term Projects appeared on BitcoinEthereumNews.com.

Cetus Introduces Permanent Liquidity Lock Feature for Sui-Based DEX In response to growing community demand, Cetus, a decentralized exchange (DEX) built on the Sui blockchain, has launched a new LP Burn feature, allowing liquidity providers (LPs) to permanently lock their liquidity in specific pools. The innovative feature was introduced through an official X (formerly Twitter) post on September 30, 2024, and is designed to facilitate long-term commitments, especially for Sui-based meme coins and community-driven projects. The LP Burn feature is a groundbreaking tool for liquidity providers who want to commit to a project for the long haul. Once liquidity is locked, it cannot be withdrawn, providing increased security and commitment for projects that rely on stable liquidity. However, LPs can still claim fees and mining rewards during this period, making it a valuable tool for long-term investors. Understanding Cetus’ LP Burn Feature The LP Burn feature offers a new way for liquidity providers to engage with decentralized finance (DeFi) on the Sui blockchain. Traditional liquidity pools allow LPs to add or withdraw liquidity at will, providing flexibility but sometimes causing instability in markets. For projects looking for long-term commitment, this model can create challenges, especially when liquidity providers pull their funds during periods of market volatility. The new LP Burn feature solves this issue by allowing LPs to permanently lock their liquidity in a designated pool. Once locked, LPs can no longer withdraw the funds they’ve provided, ensuring that liquidity remains in the pool indefinitely. However, LPs will still be able to earn fees from the pool’s trading activity and mining rewards from liquidity provision. By introducing this feature, Cetus is targeting teams and projects that seek to establish a long-term liquidity base. This could be particularly appealing for meme coin projects, which often rely heavily on community engagement and…

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Filed under: News - @ September 30, 2024 5:18 pm