A post explaining what a rug pull is. I think its quite nice for anyone going into the Defi Space.
https://leofinance.io/@shortsegments/all-honey-swap-investors-lose-their-fun-in-a-rug-pull
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There are so many DeFi platforms out there and rug pulls are quite common in DeFi space. One must proceed with caution. The best way to find trust in a project is to see if their code is audited by a renowned auditor like Certik. That's the reason why Cub Finance got it done.
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Yea and it takes money to do an audit so you know that they are willing to fork out the money. But even then I think some people could make things look like they comply then pull the rug. Even if they changed something in the background after, we would not know.
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Great point J. There should be a Decentralized way of approving any kind of changes on the platform. Just like we have on HIVE. We elect witnesses who make sure that this ecosystem is healthy and that is why they get paid extra to be in top 20.
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That was a very nice post. I didn't know the first thing about rug pulls so it was really helpful.
Thanks for sharing it here
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Goose Finance made sure to remove the portion of the Pancake Swap code that makes these rug-pulls possible. I have not read ShortSegments' article yet, so not sure if he has addressed it.
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