Decentralized exchange is a channel to massive profit due to their flexibilities; less regulated system without potential restricting factors. Decentralized exchange is a welcome zone for anyone thus making it a dangerous place because as of today, almost anyone with little or no web3 coding experience can easily deploy their tokens with few clicks making dex trading complicated and can lead to loss of funds from investor($) to deployers with evil intent a.k.a (Scammers).

For the sake of new traders or investors, today I am alighting keys measures to kick off getting rugged trading on decentralized exchanges based on my personal experience with the dex. Especially with EVMs chain based tokens.

Now let's proceed. As known these are dex platforms where you can find memes, tokens or nfts:
+ dexscreener.com
+ dextools.io
+ dexview.com

For this article my spotlight will be on dextools.io. Regardless of the chain you wish to trade, using these custom filter options on dextools.io in addition to your own filters that you wish to apply will help us reduce our chances of getting rugged.
+ Toggle on Hide Tokens without social networks.
+ Liquidity: $200k - $25000000
+ Pool Created: More Than 4 or 7 Days
But I personally use more than 14 or 21 Days
+ At the "Contract" section, select:
"Only Audited Contracts"
Then click filter when you have inputed the filter as indicated to apply our filtered settings.

We should now have a tabular index of token that suits our aim of filter but that's not all. We need to pay close attention here if we are more concerned about not loosing our funds to rug projects.

At this point, we only want to select token having:
+ Green label
+ Black Trust Mark and 0 next to it at the "Audit" column of the indexed token.

Further more on the coin page, we want to check for the following project audit details by tapping the green audit label with black shield icon:
+ Contract Verified: Yes
+ Honeypot: No
+ Buy Tax: 0% - 5% Max
+ Sell Tax: 0% - 5% Max
+ Proxy Contract: No
+ Mintable: No
+ Tax Modifiable: No
+ Transfer Pausable: No
+ Blacklisted: No
+ Scam Risk: No or ???

Also it's important to check for:
"Freeze Authority", which must be "Disabled".
If freeze authority is enabled, this gives the token deployer the authority to freeze any wallet from transferring or selling the concerned token.

Next, we click the coin fitting the audit criteria above then proceed further with more safety confirmations on the coin page by:

+ Liquidity Confirmation:
As I explained in my previous post, confirming liquidity is very vital to keep our investment off fake pumps, bot price inflation aiming liquidity grabs or decitful liquidity inflation to lure in unoticing investors. We can achieve this by tapping the copy icon beside the hyperlinked contract address after the semicolon next to the token name. For example:
PolyDoge: 0x8a9...e472 ◽
Then we comfirm this token liquidity by pasting this contract address in the search bar of the three dex platforms listed above. Here is the key, if it happens the liquidity is pumped, the liquidity value will not be the same in all of these exchanges. Alternatively you can paste the contract address into the search engine as it will index dex platforms where we can also check for the equal value of liquidity.

+ Locked Liquidity:
Project with locked liquidity gives us confidence as an investor that the project deployed is not around to vanish all of a sudden with the traded liquidity or investors funds.

+ Project Features:
On the coin page, tap on the project website link and look for the following features:
+ Staking: This features gives us the reduction of unprecedented dumps by 50% especially if the project is at early stage where large holders might have staked their token for rewards from the project.
+ Use Case: The project use Case is important to determine if the project is reliable except it's a meme coin project without use case. In situation of a meme coin, tap the project social network pages to check for community engagements with the projects. The higher the community engagements the higher the project is reliable without staking only if it's a meme project.

Aside from using the audit checks from dextools.io we can also use online tools to check for honeypots or rug project using the project contract address on the website below to check:
For most EVM chains:
+ honeypot.is
+ de.fi

For Solana Chain:
+ rugcheck.xyz

Without forgetting Large holders of a token or coin project:
Based on observation (OBS). A rug project can also look innocent. Where the rug project holder gets upperhands by making everything seem legit and it's safe as per audit but distributes tokens or coins by transfer to other wallet and dumpining it via DCA if played intelligently or via limit order (NewBie) scammers approach. To circumvent this condition:
More of the tokens or coins at least by minimum of 80% should be allocated to the compatible project chain exchange, swap or aggregator.

Once this fundamental checks are completed and we are satisfied with the result of our checks on the project or token, then our technical analysis comes in to confirm bullish reversal or entry and vice versa for trade exit.

Pls note that this is not a financial advice as this article is based on my personal experience trading on dex, not AI generated and I hope it helps us all in our journey trading on dex.

DYOR

🙏Namaste🙏
#DEX #Rug #Trending
$SOL $MATIC $TON