A soft lock refers to a situation where a user can access their funds but faces restrictions on certain actions. This often occurs in staking or liquidity pools, where assets are tied up for a specific period.Users may still earn rewards during the soft lock period, but they cannot withdraw or transfer their assets until the lock expires. This is typically designed to promote stability within a network or platform by encouraging users to keep their funds invested.Soft locks are beneficial for projects looking to maintain liquidity and prevent sudden sell-offs. They provide an incentive for users to remain engaged with the platform, as they can earn rewards while waiting for the opportunity to access their funds fully. Overall, soft locks balance user engagement and project stability, offering a compromise between accessibility and the need to maintain a healthy ecosystem.
Avalanche Treasury Co. to Go Public in $675M Deal With Mountain Lake Acquisition
Avalanche Treasury Co. (AVAT), a digital asset treasury company aligned with the Avalanche Foundation, said Wednesday it has agreed to