Difference between LP Lock and Team Vesting

Some people might find the two share many similarities since they are both intended for token lock-ups. One of the fundamental difference between the Liquidity Pool Lock and team/presale vesting is the following:

LP Lock: A liquidity lock-up, the locked-up assets are major tokens that the investors use to purchase the tokens. Ex. BNB, BTC, ETH, BUSD, USDT.

During the lock-up period, the developers cannot withdraw the locked liquidity from the pool. This prevents a commonly practiced rugpull where developers drain the liquidity and abandon the project.

Presale/team vesting: A lock-up of the base/project tokens of the developers and presale participants. Ex. If the base token of your project is named “AST” for example. The lock-up of AST will be considered as a vesting.

Vesting helps prevent a form of “soft rugpull” where developers and early presale participants dump a massive amount of tokens that causes the price to crash.

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