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      • Trust & Transparency Issues
      • Liquidity & Market Inefficiencies
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  • Locked Tokens and DeFi
  • Why OTC Trading Fails Locked Token Holders

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  1. GETTING STARTED

Locked Tokens: A Liquidity Problem in DeFi

PreviousThe Future of Trading for Locked TokensNextTrust & Transparency Issues

Last updated 3 months ago

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Locked Tokens and DeFi

DeFi trading has transformed asset exchange, but locked tokens remained difficult to trade. While decentralized markets provided new opportunities, they also came with challenges: fragmented liquidity, unpredictable fees, and the risk of price slippage.

Vesting schedules lock tokens for a period to prevent early selling. While this protects projects from sudden price drops, it also limits liquidity for holders who may want to exit their positions early. Traditional markets offered few options for trading these assets, forcing many holders into inefficient OTC deals.

Without a liquid marketplace, traders face escrow risks, price inefficiencies, and limited access to buyers. SecondSwap removes these barriers—providing an efficient, automated way to trade vested tokens across chains.

Why OTC Trading Fails Locked Token Holders

Locked token trading was never designed for efficiency. Without a dedicated marketplace, traders relied on slow, informal OTC deals that introduced trust risks, pricing uncertainty, and settlement delays.

These challenges stifled market potential and created barriers to entry for new participants. Addressing these inefficiencies requires a scalable, automated solution that bridges the gaps between token issuers, sellers, and buyers while improving transparency and reducing costs.

Trust & Transparency Issues
Liquidity & Market Inefficiencies
Capital & Execution Risks