Free Liquidity Lock and Vesting

Liquidity locks and team vesting are not only desired but almost required nowadays for traders to feel comfortable with your team and token. There are many options for protocols that will lock liquidity and enforce vesting for you, but they'll all require payment in one way or another and extra work on your end.

With Goat, everything is built in. Pools automatically lock your liquidity and enforce vesting so there's no work needed on your end to set those features up. You don't need to trust third-parties, and you don't need to pay anything at all to take advantage of these features.

Liquidity Lock

Our liquidity lock is a bit different than what's standard. Most lockers today lock liquidity from a pool until a certain date then on the date it can all be withdrawn. This negates a lot of rug pull potential, but is not as safe as it can be. The biggest problem with it is that teams can pretend to be in it for the long run until that date, then immediately remove everything.

Our solution to this problem is to only allow a certain percent of liquidity to be removed at a time. With our initial variables, the liquidity lock will allow 25% of the initial liquidity amount to be removed each week. This allowance for liquidity will not rollover.

For example, a team may withdraw 25% of the initial liquidity amount in week 1. If they do not withdraw week 2, they can still only withdraw a maximum of 25% at week 3. If they then wait a year, they can still only withdraw 25% again at that point.

This strategy ensures communities can never be blindsided by rug pulls as they will always take a certain amount of time to execute, during which communities can see what's happening and question the team and/or sell their tokens.

Vesting

Our vesting also does not work as is normal today. Instead of locking up team tokens and releasing them slowly, we simply disallow selling tokens into the AMM during the bootstrapping phase that were not initially purchased from the pool. This means that not only team tokens but any tokens distributed through farming or malicious minting may not be sold until adequate liquidity is raised for a normal AMM.

With this functionality, users can rest assured that they won't be blindsided by a huge dump of tokens while the protocol is still bootstrapping. However, once the pool reaches the liquidity goal, vesting will be discontinued after a period of time so that teams can sell tokens for funding or other needs.