The Hidden Risks of Liquidity Pools

Liquidity pools are the backbone of most decentralized exchanges. They make it possible to trade any token at any time without needing a direct buyer or seller. Sounds perfect, right? Until you realise how fragile those systems really are.

Every token pair you trade against on a DEX relies on liquidity providers who lock in funds to keep the market running. But those funds can vanish overnight. When a project’s liquidity is pulled, the token becomes untradeable, prices collapse, and holders are left stranded. It is one of the most common ways people lose money in DeFi.

Even when liquidity is stable, pools come with hidden risks. Bots manipulate prices, slippage eats into trades, and large moves can drain liquidity instantly. On top of that, whales who control a large portion of the pool can influence price action, leaving smaller traders at a disadvantage.

OTC trading removes all of those risks. There are no pools, no liquidity providers, and no exposure to sudden rugs. Trades happen directly between buyers and sellers, secured by smart contract escrow. Both sides know exactly what they are getting, and the market stays unaffected.

That is the difference deOTC brings to the table. It gives traders full control over their assets without relying on others to maintain liquidity or fairness.

DeFi should be about freedom, not fear. OTC trading makes that possible.

👉 deotc.io