Marketplace DYOR Guide
The following guide will provide some tips & tricks on how to practice due diligence within the Drops Marketplace when buying liquidity.
Last updated
The following guide will provide some tips & tricks on how to practice due diligence within the Drops Marketplace when buying liquidity.
Last updated
The DROPS Marketplace awards a verification badge to projects with the highest security & lowest volatility. Verified listings are denominated by a blue check mark.
Due Note: Unverified listings can also be "safe", always conduct your own research to make an informed decision.
Token pairs that have been launched multiple months or years prior will typically have much lower volatility than pairs which have recently been deployed. Launch date/time can be verified by pasting the LP Pair address of the listing being purchased in the Dextools search bar.
The pair volatility is an important factor to verify in order to ensure that the ETH value within the purchased pair will be maintained until the unlock date.
Pair volatility can be verified by visiting the expanded view of the listing being purchased. For additional confirmation, it is suggested to check the daily trading volume of the pair, which can be done by visiting the Dextools page of the pair being purchased.
In order to ensure that no substantial amount of the token supply can be sold back into the pool, it suggested to verify the supply distribution of the token within the pair being purchased. A particular attention should be given to the top 10 holders; If a large amount of supply is held between a small number of wallets, this is usually a bad sign.
However, if the top wallets are blacklisted and the token’s smart contract is renounced, the previous statement may be disregarded.
Supply distribution can be verified by visiting the etherscan page of the token within the pair being purchased. Blacklists can typically be verified in the “Read Contract” function of this token’s etherscan page.
Certain malicious functions within a token’s smart contract could impact the ETH value within the listed pair. It is suggested to verify that none of these functions are present before purchasing a listing. This can be verified by checking the contract of the token within the pair using contract scanners, or by reading through the source code of this token. Malicious functions to look for include Mint functions & Dust functions
For any questions or problems that may need resolving, feel free to ask in the official support chat linked below.
