Locked Liquidy vs. Decentralized Liquidity: Which is Better?

If you read my last post, you alread know that a“shitcoin” named TOAD is solving the yield farming inflation problem by getting rid of low liquidity and huge emission rate at the same time. Some believe this will revolutionize yield farming — lets find out why.

TOAD decided to offer decentralized liquidity, releasing all liq to the community and people farm to get LP-tokens as rewards. There is no possibility for a rug pull from the team: The only scenario for the a rug is all LP providers to pull their liquidity out simultaneously. A very unlikely scenario if the project keeps delivering, and that kind of coordinated effort would need to be include everyone on the community. In plain English: not going to happen.

Rug pull refers to a scenario of a crypto project taking the investors money & disappearing

The big question here: What is the better practice for crypto going forward and why?

A ) Teams giving away the liquidity to the community to decentralize it, like TOAD does

OR

B ) Devs locking team tokens for X months?

…Surely Toad.Network will do better with option A), and so will other new crypto tokens entering the marketplace. Let me explain:

You can already see that the liquidity on Pancake Swap for TOAD is enormous. This will help all minor projects to get enough liquidity with a proof of not rugging their communities.

Often times people do not buy in to small projects as the liquidity is so low that they would not be able to sell. I think TOAD will revolutionize the whole of crypto as it will create so much buffer for liquidity to come from fiat to crypto.

TOAD seems to have solved a core problem: When teams give out their liquidity for the community, the supply can be released in full and still have farming. This will also prevent inflation, which has been bugging the farming industry from the beginning.

Inflation from the difference of circulating supply vs. total supply is bad for price

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Taking into account TOAD is a 1M mcap project and it is solving a core problem in yield farming, there is something unique here in the making. I know people are seeing this coin on BSC now which is full of projects that don’t deliver anything but promises on fast gains. Well, the same thing happens with everything that’s even a bit innovatide: Most don’t realize the potential in it before they see it flying.

Remember where you realized the potential of TOAD.Network the first time. It is not easy to spot a project solving a core problem when it looks like a meme…

Let me know in the comments if you think decentralized liquidity is the future of token launches or not!

In search of undervalued investments