What is a Liquidity Escrow ?

Introduction

In the world of decentralized finance (DeFi), liquidity is key to keeping the trading wheels turning smoothly. When developers lock liquidity, it ensures that funds are securely tied up for a certain period, preventing sudden market drops or unfair practices. But what if there was a way to access that locked liquidity sooner? That’s where a liquidity escrow comes in.

Understanding Liquidity Escrow

A liquidity escrow is like a middleman that helps people buy and sell locked liquidity in a safe and fair way. Here’s how it works: