> For the complete documentation index, see [llms.txt](https://skol.gitbook.io/skol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://skol.gitbook.io/skol/the-lp-system/burned-lp.md).

# Burned LP

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#### What Is Burned Liquidity in Skol’s LP System?

Burned liquidity means Skol sends its LP (liquidity provider) tokens to a dead address (like `0x000...dEaD`), making them permanently inaccessible. This locks the paired tokens (e.g., SKOL/ETH) on Uniswap forever, ensuring:

* Liquidity can't be withdrawn
* LP tokens are destroyed
* Trading remains active and stable

#### How It Works:

1. Add Liquidity: Skol pairs SKOL with ETH (or another token) on Uniswap and receives LP tokens.
2. Burn LP Tokens: These tokens are sent to a burn address, not stored or locked.
3. Permanent Effect: Liquidity is locked forever, ensuring ongoing, secure trading.

#### Why Burn Liquidity?

| Benefit             | Reason                                     |
| ------------------- | ------------------------------------------ |
| Rug-Proof           | Devs can’t remove liquidity or dump tokens |
| Investor Confidence | Shows commitment to long-term stability    |
| Trading Stability   | Reduces sudden liquidity changes           |
| Transparency        | Burns are public and verifiable on-chain   |

Example: Skol adds 2 ETH + 50,000 SKOL to Uniswap, burns the LP tokens, and the liquidity becomes permanently locked — visible and verifiable on Etherscan.

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