# Liquidity Protection

In addition to the equal opportunity for traders during the Crowdpooling campaign, it is also important to maintain a balanced and fair relationship between traders and project parties. The more balanced it is, the more it contributes to the healthy development of the market. That is why we have designed the liquidity protection mechanism. There is also a liquidity protection period to prevent the project team from "rug-pulling", i.e. draining pool liquidity, immediately.

1.The bid-side liquidity is established by proceeds from Crowdpooling participants, and the ask-side liquidity is established by tokens reserved for the pool when the campaign was first set up.

2.This initial liquidity belongs to creator of this Crowdpooling campaign, but the creator cannot remove this liquidity during the liquidity protection period.

3.Anyone is able to provide liquidity to these pools, as with a AMM mechanism adopted by Starmaker.

4.This resulting spot market follows the bonding curve method: when a trader buys tokens, the token price goes up; when a trade sells tokens, the token price goes down.


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