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: