Have you recently discovered a newly launched token on the Ethereum blockchain and would like to assess the level of commitment by its developer team? One way to do this is by finding out the duration of liquidity lock on the decentralized exchange where the token is being traded.
In this guide, we will learn how to know whether developer has locked liquidity for a specific ETH token, and then so, for how long the liquidity is locked.
Check Liquidity Lock Duration
Step 1: Get Token Contract Address
The token contract address can typically be found on the project's website or on their social media pages, as this information is often publicly shared.
Alternatively, you can reach out to the project team or community through project's official communication channels (such as Telegram or Discord) and ask for the contract address.
When the project is already listed on cryptocurrency price tracking websites such as CoinMarketCap and CoinGecko, you can also obtain the contract address from there.
Step 2: Find Lock Duration of Liquidity
Go to Dex Screener website. Click on the search bar.
Now, you have search option in front of you. paste the token's contract address that you copied earlier. In search results, you might see different pairs of this token.
It's recommended to check the locked liquidity duration for pairs that have significant liquidity and trading volume, to ensure that there will be good amount of liquidity for a certain period of time.
You can check the locked liquidity duration for each pair individually using the same method. In our case, there is only one pair of token available for trading, so simply click on it.
In the sidebar, you can see the trading info for that token. Just scroll it down.
Now, you'll see the liquidity info. Just click on LPs.
You'll be redirected to Ether scan page of this token. Scroll down and you'll be able to see the wallets of top 100 holders of that token.
We provide liquidity to any token using a wallet address. So, liquidity wallet will also be there.
Look for the wallet that has a 📄 sign next to it. This indicates that the wallet is a liquidity provider and has locked the liquidity.
When you don't see the 📄 sign with any wallet, it means liquidity hasn't been locked for that token.
Also, when you see that wallet with 📄 sign has very little to no liquidity percentage comparetively to other top 100 holders, it means either real liquidity is very little which you can confirm Dex screener or significant amount of liquidity is unlocked.
For instance, in our case we have the wallet which holds 95.57% of tokens and has locked the liquidity. Just click on it.
You'll be redirect to another Ether scan page. Scroll down on the page until you come across the Txn Hash of the lock you're looking for. You can check the lock status for all transaction hashes, for instance, we're checking the lock status for the wallet that holds more than 90% of the liquidity pool share.
You can see the transaction details related to the liquidity lock on this page.
You are able to see the all logs now. Find the data tab in logs with unlockDate value. Copy this value.
Visit Unix Time Stamp website and enter your copied value.
You will see the time when the liquidity is scheduled to unlock.
Frequently Asked Questions
1. Is it not possible to trade on DEX without locked liquidty?
When trading volume is high, executing trades in the market becomes easier due to the increased availability of trading liquidity. Conversely, during periods of low trading volume and no locked liquidity, fulfilling orders can be challenging.
2. What tokens are called ERC-20 tokens?
This is a technical standard used for tokens based on the Ethereum blockchain, which specifies a set of rules and guidelines for the creation and use of tokens on the Ethereum blockchain.