Locking Mechanism
Author: Dylan, Avinasi Labs
Uniswap LP tokens created at launch are permanently locked in the Governance contract with no removal mechanism except democratic delisting. This guarantees secondary market liquidity throughout project lifecycle and prevents rug pulls.
Why Permanent Locking
The problem: In typical token launches, teams control liquidity pools and can drain them after raising capital, leaving investors unable to trade.
DeLong's solution: LP tokens are minted directly to the Governance contract and cannot be transferred out except through delisting votes. This creates three protections:
Guaranteed exit liquidity - Investors can always trade on Uniswap regardless of team actions
Rug pull prevention - Teams cannot remove liquidity to exit positions
Capital recovery option - Failed projects can reclaim LP value through democratic delisting
How Locking Works
When an IDO completes successfully:
Protocol calculates LP requirements based on Initial Equity Ratio
Creates Uniswap V2 pool (or uses existing)
Adds liquidity: tokens + USDC
LP tokens are minted directly to Governance contract
No transfer functions exist except delisting execution
The Governance contract holds LP tokens with no ability to:
Transfer LP tokens to external addresses
Approve external contracts to access LP tokens
Remove liquidity during normal operations
Upgrade contract to add removal functions
Lock as Investor Protection
Duration
Until delisting vote
6-12 months
None
Removal
Requires 50%+ vote
Automatic expiry
Team unilateral
Protection
Permanent
Temporary
None
Traditional time locks expire. DeLong's lock persists until formal shutdown via majority vote.
Verification Methods
Anyone can verify LP tokens are locked:
Check LP balance - Query LP token contract for Governance balance
Read contract code - Verify no transfer functions exist except delisting
Monitor events - Watch for suspicious LP token movements
Verify no approvals - Confirm governance has no standing approvals
See Verification Methods for detailed steps.
Delisting: The Only Exception
The only way to access locked LP tokens is through delisting:
Token holder creates delisting proposal (requires 1% of supply)
Seven-day voting period
Majority approval (50%+ votes yes)
Execution removes LP from Uniswap
Recovered USDC + treasury distributed proportionally to all holders
Even during delisting, LP tokens don't transfer to team—they're burned to recover capital for all investors.
Additional Benefits
Trading fee accumulation: While locked, the LP position accumulates Uniswap's 0.3% trading fees, increasing LP value over time. This enhances capital recovery during delisting.
Impermanent loss: Price changes cause impermanent loss like any LP position, but this only matters if delisting occurs. During normal operation, locked LP simply provides guaranteed trading liquidity.
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