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Liquidity Locking
Timelock liquidity in a Visor Vault
Participating protocols have the option to timelock liquidity tokens staked within Visor Smart Vaults.
Protocols benefit by having a stable supply of liquidity for a certain period of time, and liquidity providers benefit from the diminished risk of "rug pulling" due to the timelock.

Example

Project_DEF may lock up their LP NFTs with Visor
Scenario:
    1.
    Project_DEF wishes to add stability to the liquidity of its token DEF by timelocking liquidity for some duration of time
    2.
    Because the timelock function gives liquidity providers an extra sense of security, Bob the liquidity provider, decides to supply liquidity to the DEF-ETH Uniswap v3 pool
    3.
    In exchange for providing this liquidity, Bob receives a DEF LP NFT that represent his ownership share in the DEF-ETH liquidity pool
    4.
    Bob then stakes and timelocks his DEF LP NFT in his Visor Smart Vault to earn rewards
Benefits:
    1.
    Bob earns Uniswap trading fees for his contribution to the Uniswap DEF-ETH liquidity pool
    2.
    Project_DEF and Bob both benefit from having a stable supply of liquidity and greater investor confidence due to the timelock function
Last modified 4mo ago
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