What's the best way to avoid fake liquidity pool?
What's the best way to avoid fake liquidity pool?
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OnChainMonkey · External communityPost link
External question — Solana Stack Exchange
Author: OnChainMonkey
Original post: https://solana.stackexchange.com/questions/23073
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I am building a crowdfunding platform in Solana.
I am thinking to transfer tokens immediately to users when they back the project even if the crowdfunding isn't completed.
But after a bit of research I realized that could result in fake liquidity pools before the official liquidity pool. But maybe that's okay if I warn people about it in my website that official liquidity pool isn't deployed? I wonder what's the worst that could happen.
Also it looks like pump.fun also transfer tokens immediately to people, I assume that can also result in fake liquidity pools, so maybe its not a big issue if pump.fun allows it? or maybe pump.fun avoids such exploits by partnering with Jupiter and other platform?
I have few other ideas to resolve this:
use transfer hook so I can disable the token transfer until the official lp is created, but seems like it's not as widely supported by liquidity pool providers so that's a bit of a issue.
instead of immediately transferring tokens, transfer tokens right before the liquidity pool creation, that's also problematic because attackers will still get a 2-10 minute window to create fake liquidity pool.
don't transfer tokens immediately, instead, show a option to collect tokens once the liquidity pool is created, my concern here is, if my website went down or I get rate limited, people may fail to collect tokens in the early stages of liquidity pool, which could be problematic from the perspective of users.
Maybe I am overthinking solutions, any help would be appreciated. Thanks!
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Aseneca · External communityPost link
External answer — Solana Stack Exchange
Author: Aseneca
Original post: https://solana.stackexchange.com/a/23134
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Nope, you aren't overthinking this at all. There are indeed a handful number of ways this can go wrong and shoot you in the foot. Malicious pool that tax slippage from buyers, unfounded prices and users confused and users ape into a fake LP, price gets booted, fragmentation, so many ways this can go wrong.
And yes, pump.fun does let buyers receive tokens right away, but the trading happens on their bonding-curve program, and they control the migration conditions/LP creation. They also coordinate with aggregators/partners to surface the canonical mint/pool. There is barely a chance you will get their guardrails “for free.”
I'd recommend you keep it as simple and robust as possible:
users deposit into escrow
balances are tracked
if crowdfunding goal not met, refund
if goal is met, execute a bundle: create a mint,seed official LP on chosen AMM.
What you should aim to achieve is a zero fake-LP risk pre-TGE, near-zero window at TGE, no reliance on your website and a smooth user experience.
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Quoted from Forex.com.bd-Editorial External question — Solana Stack Exchange Author: OnChainMonkey Source score (net votes, not local likes): 1 Original post: https://solana.stackexchange.com/questions/23073 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I am building a crowdfunding platform in Solana. I am thinking to transfer tokens immediately to users when they back the project even if the crowdfunding isn't completed. But after a bit of research I realized that could result in fake liquidity pools before the official liquidity pool. But maybe that's okay if I warn people about it in my website that official liquidity pool isn't deployed? I wonder what's the worst that could happen. Also it looks like pump.fun also transfer tokens immediately to people, I assume that can also result in fake liquidity pools, so maybe its not a big issue if pump.fun allows it? or maybe pump.fun avoids such exploits by partnering with Jupiter and other platform? I have few other ideas to resolve this: use transfer hook so I can disable the token transfer until the official lp is created, but seems like it's not as widely supported by liquidity pool providers so that's a bit of a issue. instead of immediately transferring tokens, transfer tokens right before the liquidity pool creation, that's also problematic because attackers will still get a 2-10 minute window to create fake liquidity pool. don't transfer tokens immediately, instead, show a option to collect tokens once the liquidity pool is created, my concern here is, if my website went down or I get rate limited, people may fail to collect tokens in the early stages of liquidity pool, which could be problematic from the perspective of users. Maybe I am overthinking solutions, any help would be appreciated. Thanks!
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