DEX Merlin and CertiK Plan to Compensate $2M to Users Impacted in Rugpull
A rug pull is a type of exit scam in which the perpetrators create a new token, launch a liquidity pool for it and pair it with a base token, like ether (ETH) or a stablecoin like dai (DAI). A liquidity pool is a large pool of tokens that a protocol uses to fulfill trades, as opposed to an order book system where buyers and sellers list their trade orders and wait to be filled.
