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DeFi Safety

What is Rug pull?

When a token's creators abandon the project and drain its liquidity, leaving holders unable to sell.

How it works

Common in new, low-liquidity tokens. Signals: unlocked LP, anonymous teams, concentrated holders. Real exit liquidity — what you can actually sell into — matters more than the headline liquidity number, which can be one-sided.

Example

In practiceA pool shows millions in headline liquidity but on-chain reserves reveal only a few hundred dollars of real sell depth — you couldn't exit.

How do I spot a likely rug?

Check LP lock status, holder concentration, and real (not headline) exit liquidity. When in doubt, size small.

Go deeper: DeFi From Scratch

The complete, step-by-step guide — every command, config, and the reasoning behind it.

Get the guide