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Published by TOSScoin Research
Liquidity Trust Signals on Solana: LP Burns, Locks & Credibility
Key Findings
1) Raydium explicitly states LP can be withdrawn anytime unless burned/locked
- Source: https://docs.raydium.io/raydium/for-liquidity-providers/liquidity-faq
- Finding: LPs can withdraw liquidity at any time; if LP tokens are staked, they must be unstaked first.
- Why it matters: Baseline for risk messaging — "liquidity exists" is not the same as "liquidity is locked."
2) Raydium FAQ confirms permanent lock/burn behavior
- Source: same FAQ page above
- Finding: It notes permanent locking via Burn & Earn and also warns that manually burned LP tokens/associated token account are unrecoverable.
- Why it matters: Gives an official reference for "irreversible LP burn" trust narratives.
3) Solana token docs confirm burn mechanics reduce supply permanently
- Source: https://solana.com/docs/tokens/basics/burn-tokens
- Finding:
BurnCheckeddestroys tokens permanently and reduces mint supply, with burn authority tied to token account owner. - Why it matters: Technical basis for proving irreversibility when LP tokens are truly burned.
4) Raydium LaunchLab docs clarify migration flow and creator parameters
- Source: https://docs.raydium.io/raydium/launchlab/for-builders/launching-a-token
- Finding: launch flow is bonding-curve first, then liquidity migration to Raydium pool; parameters include creator fee settings and vesting constraints.
- Why it matters: Useful for evaluating whether a launch's post-migration incentives align with "community-first liquidity" messaging.
Tactical Recommendations
- In public comms, separate three states clearly: unlocked LP, time-locked LP, burned LP.
- When comparing projects, avoid vague "liquidity locked" claims unless lock/burn proof is verifiable on-chain.
- Build a simple checklist for each target coin: LP token mint, top LP holders, burn address exposure, lock contract evidence.