Locked liquidity refers to funds that are moved into a smart contract or wallet that restricts access for a certain period. This is commonly done to reassure investors that there will be a stable liquidity pool for a token, preventing the risk of sudden sell-offs or “rug pulls” by the developers.When liquidity is locked, it means that the tokens used to provide liquidity on decentralized exchanges (DEXs) cannot be withdrawn for a predetermined duration. This creates trust among buyers, as it ensures that the liquidity necessary for trading is available and that developers cannot manipulate the funds.Locking liquidity is often communicated through a time frame, such as a few months or even years. Projects that implement this feature typically share proof or a transaction record to verify that funds are indeed locked.By ensuring that liquidity is secured, developers aim to foster a stable trading environment, which can help attract more investors and establish credibility.