What LP tokens are
Adding liquidity to a pool gives you LP tokens that prove your share. Whoever holds them can withdraw the liquidity. That is the lever behind a liquidity rug pull, so holders look at what happened to the LP tokens.
Burn or lock
| Burn | Lock | |
|---|---|---|
| What happens | LP tokens are destroyed | LP tokens sit in a locker contract |
| Can you withdraw later? | Never | After the unlock date |
| Signal to holders | Strongest | Strong until the date passes |
Pick burn if you will never need the liquidity back. Pick a lock if you want it back on a schedule. Locking vesting tokens for a team is a related job, covered by lockers.
Steps
- Add liquidity and note your LP token mint or position.
- Choose burn (send to a burn instruction) or open a locker and set the unlock time.
- Sign and keep the transaction link.
- Check it on an explorer: the LP supply should drop (burn) or the tokens should sit in the locker.
Some pool types, such as concentrated positions, hold liquidity as a position rather than fungible LP tokens, and then the process differs.
Compare tools on the lockers and vesting page. Pool basics: how to create a Raydium liquidity pool.