DeFi's rug pull traps to look out for
It is amazing how if the Hive community wants something in most cases it gets done. Few days/weeks ago there were posts and tweets I saw asking Hive need to be part of the DeFi trend and for those unaware we are in the DiFi game with the ability to swap ETH for example to WHIVE with WHIVE being backed by HIVE.
More on that here: Introducing Wrapped Hive - Hive on Ethereum!
Basically Hive is now in the DeFi trend and there is the possibility this might impact Hive positively. Obviously some Hivers will be partaking in this, I for one wouldn't want to miss out on this which bring us to the rug pull practices we have to be mindfull of using Uniswap.
This is a con that begins with minting new tokens, creating Telegram groups to get the buzz going, followed by a Uniswap listing and injecting liquidity. At this point, the original malicious liquidity provider would wait for people to swap their ETH for the newly minted coin, after which the token’s creators would drain the liquidity pool, leaving holders with nothing but a worthless coin. Source
With risks like this one have to be cautious on the coins being swapped, a safe way I saw on while digging up on Uniswap is never search for coins or token on Unisawp instead access the token from the pairing on Coingecko, another safe practice would be double checking on the contract.
This are almost foreign to me as I have actually never used Uniswap but we can learn as we go along and we definitely blessed with clued up Hivers whom we can learn from. In crypto we learn everyday!
Cheers.
We owe it to ourselves to make Hive great
