Time Lock
Token locks work by allowing a user to send tokens to a smart contract, where they remain inaccessible for trading or withdrawal until a specified period has passed. The sender can customize this lock period, choosing the exact date and time for the tokens to be released.
Our token lockup smart contracts are fully decentralized—only the user controls access, with no intervention from CryptoHub. They support over 15 different blockchains, and each contract is thoroughly audited by top security firms for reliability and safety.
Lockup Linear
Linear
Lockup Linear streams are the simplest token distribution curve in Sablier. The streamed amount over time follows a straight line that goes up and to the right on a graph, which corresponds to the identity function f(x)=xf(x)=x:
01020304050607080901000102030405060708090100x - timey - earnings(64.796, 64.796)
With this shape of stream, the payment rate remains constant, meaning that the same fraction of the deposit amount is streamed to the recipient every second. This provides greater predictability and is easy to understand because of how intuitive it is. Imagine a diagonal line going up and to the right – that's how simple it is.
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The gas cost to create this shape is approximately 168,923 on Mainnet. This may vary due to multiple factors.
Initial Unlock
The Unlock Linear shape combines an initial immediate release of tokens with a steady, linear payout over time. This shape is ideal for employment contracts that include a signing bonus along with a regular payout schedule.
01020304050607080901000102030405060708090100x - timey - earnings(73.367, 79.924)
At the beginning of the stream, a fixed amount of tokens is instantly available to the recipient — this is your "signing bonus". Following this, the remaining tokens begin to stream continuously at a consistent rate until the end of the contract term — this is your "salary".
Another use case is a token distribution to investors where a particular amount gets unlocked immediately followed by a linear vesting plan.
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The gas cost to create this shape is approximately 191,182 on Mainnet. This may vary due to multiple factors.
Cliff Unlock
It is possible to attach a "cliff" to a Lockup Linear stream, which sets a cut-off point for releasing tokens. Prior to the cliff, the recipient cannot withdraw any tokens, but the stream continues to accrue them. After the cliff, the constant payment rate per second kicks in.
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This feature is especially useful for vesting ERC-20 tokens as it allows you to have, for example, a 1-year cliff, and then 3 additional years of linear streaming. If the stream is for an employee, you can make it cancellable so that if the employee leaves your company during the stream, you can cancel it and recover the tokens that have not yet been streamed.
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The gas cost to create this shape is approximately 213,708 on Mainnet. This may vary due to multiple factors.
Initial Cliff Unlock
This shape is useful for companies who want to distribute tokens to their investors using a cliff followed by linear vesting but also want to unlock some liquidity at the beginning to be able to allow investors to bootstrap AMM pools.
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Initially, a set amount of tokens are made available to the recipient as an upfront payment. After this initial unlock, the tokens are held during the cliff period until the moment of time set. The release resumes in a linearly post-cliff.
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The gas cost to create this shape is approximately 214,067 on Mainnet. This may vary due to multiple factors.
Lockup Dynamic
Lockup Dynamic streams are what makes Sablier so unique, since they enable the creation of an arbitrary streaming curve, including non-linear curves.
On the Sablier Interface, we support only some distribution shapes (the ones enumerated below), but the potential for innovation is limitless when you interact programmatically with the contracts. For example, one could design a logarithmic stream that emulates the f(x)=log(x)f(x)=log(x) function.
These streams are powered by a number of user-provided segments, which we will cover in the next article. What is important to note here is that with Lockup Dynamic, Sablier has evolved into a universal streaming engine, capable of supporting any custom streaming curve.
Exponential
A fantastic use case for Lockup Dynamic is Exponential streams, a shape through which the recipient receives increasingly more tokens as time passes.
01020304050607080901000102030405060708090100x - timey - earnings
Exponentials are a great fit if you are looking to airdrop tokens, because your community members will receive the majority of the tokens towards the end of the stream instead of receiving the tokens all at once (no streaming) or in a linear fashion (Lockup Linear). This incentivizes long-term behavior and a constructive attitude.
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The gas cost to create this shape is approximately 219,629 on Mainnet. This may vary due to multiple factors.
Cliff Exponential
Another use case for Lockup Dynamic is a variation of the previous design: an Cliff Exponential.
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The stream starts with a cliff (which can be how long you want), a specific amount instantly unlocked when the cliff ends, and then the rest of the stream is exponentially streamed.
This is an excellent distribution if you are a company looking to set up a token vesting plan for your employees. Your employees will have an incentive to remain with your company in the long run, as they will receive an increasingly larger number of tokens.
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The gas cost to create this shape is approximately 274,420 on Mainnet. This may vary due to multiple factors.
Lockup Tranched
Lockup Tranched streams are, as the name says, streams that have token unlocks in tranches. Even though you can use Lockup Dynamic to create a traditional vesting structure with periodic unlocks, Lockup Tranched is specifically design for that use case. As a result, a stream with tranches created using Lockup Tranched is more gas efficient than the same stream created using Lockup Dynamic.
These streams are powered by a number of user-provided tranches, which is covered in the tranches article.
Unlock in Steps
You can use Lockup Tranched to create a traditional vesting contract with periodic unlocks. In this case, the "streaming" rate would not be by the second, but by the week, month, or year.
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After each period, a specific amount becomes unlocked and available for the recipient to withdraw. Past unlocks accumulate, so if the recipient doesn't withdraw them, they will be able to withdraw them later.
The advantage of using Unlock in Steps instead of a normal vesting contract is that Sablier automates the entire process. No more worries about setting up vesting contracts or creating a user interface for your investors to claim their tokens.
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The gas cost to create this shape is approximately 299,268 on Mainnet for four unlocks. This may vary as there are multiple factors to consider.
Unlock Monthly
Unlock Monthly is a special case of Unlock in Steps where tokens are unlocked on the same day every month, e.g. the 1st of every month. This is suited for use cases like traditional monthly salaries or ESOPs plans.
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Each month, on a particular day, a specific amount of tokens becomes unlocked and available for withdrawal. Like Unlock in Steps, unwithdrawn tokens will carry over to the next period, providing flexibility and control to the recipient. This shape is ideal for employers who wish to set up advanced payment schedules for their employees, offering them access to funds on a predictable, monthly basis.
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The gas cost to create this shape is approximately 511,476 on Mainnet for a period of exactly one year. This may vary as there are multiple factors to consider.
Timelock
The Timelock shape locks all tokens for a specified period. Users cannot access the tokens until the set period elapses.
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Once the set period elapses, the full amount becomes accessible to the recipient. This setup is particularly advantageous for projects seeking to stabilize token pricing and minimize market volatility, encouraging investors to maintain their stake over a more extended period.
Name: Uniswap V3 Liquidity
Description (Optional & Editable)
Select Network
Ethereum
Base
Arbitrum
Optimism
Solana
Binance
Pulsechain
Polygon
Avalanche
Blast
Select Currency Custom Address
Amount of Tokens
Lock Duration
Lock Ownership (will get an NFT Key)
To understand liquidity locks, it's essential to first grasp the basics of how decentralized exchanges (DEXs) and Liquidity Pools (LPs) function. If you're not already familiar with these concepts, we recommend watching the following video.
What is a Liquidity Lock?
A liquidity lock prevents liquidity provider token (LP token) holders from withdrawing their funds from a liquidity pool. This is accomplished by sending the LP tokens to a time-locked smart contract, typically using liquidity-locking services like CryptoHub. Alternatively, LP tokens can be burned, making it impossible to retrieve them, rather than simply locking them.
Token holders can specify the duration of the lock, divide it into smaller segments with different owner addresses and end dates, or even transfer ownership of the lock to another wallet address. While the lock is in place, the token holder is unable to access the locked tokens.
FAQs
Tokens are way too hard to set up and build trust around. We want to help companies grow faster and create game changing projects. That's why we created this affordable, easy to use, and flexible Solution.
Multisender (1 Credit)
LP Lock (1 Credit)
Airdrop (2 Credits)
Vesting (3 Credits)
Multisender (free)
Airdrop (2 credits)
LP Lock (1 credit)
Vesting (3 credits)
Salary Management (5 credits)
Custom Claim Dashboard
We allow users to create their own vesting dashboard (unlimited vesting) with custom branding (colours, logo, promo banners) and custom DNS (using URL Cloaking?).
Currently we offer 3 types of Locks, a simple lock, vested lock and multi lock.
How does Locks Work?
Imagine it as an automated time vault where users keep their tokens for periods of time. While the tokens are locked in the Vault, no one can access the tokens making them safe from any harm.
The owner of the Lock is the wallet which paid the gas fee to create it , however the current owner can transfer ownership of the Lock to other wallet.
What can you Lock?
- Liquidity
- Tokens
- NFTs
What is Liquidity and LP Tokens
Liquidity is the term used for locking tokens into a smart contract to facilitate trading on decentralized exchanges (DEXs).
Users contribute their assets to the pool, which enables others to trade against it. In return, contributors earn fees and, sometimes, liquidity provider tokens. This mechanism enhances market liquidity and allows decentralized trading without relying on traditional order book models.
Locking tokens or LP don’t affect the tokens or liquidity performance since the LP Tokens are just a representation of the liquidity.
How long should you lock?
How does LP tokens work
What is a cliff
Operate dashboard
Reasons Why You Should Lock & Vest Tokens
Show Proof of a Vesting Schedule and Interest in the Project;
Confidence in the Project's Long-term Potential;
Manage the Overall Tokens in Circulation;
Prevent Insider Trading.
Locking Tokens
Locking Tokens involve a user sending tokens to a smart contract. While inside the contract, tokens cannot be traded or withdrawn. Tokens are released once the time period the token sender established is complete.
This time-release is customizable, with the sender being able to choose the exact day and time they want the tokens to become available. This way, the community and investors are at less risk of scams.
Locking Liquidity
Locking liquidity is a mechanism that restricts the withdrawal of funds from a liquidity pool by holders of liquidity provider tokens (LP tokens). This is accomplished by transferring LP tokens to a smart contract with a time lock.
Once the lock expires, LP tokens can be claimed and redeemed for the corresponding token pair within the liquidity pool on a decentralized exchange (DEX) such as Uniswap (e.g. SWAP/ETH).
Vesting Tokens
Token vesting is a gradual access process for token holders, which may include private investors, employees, advisors, or venture capital firms.
When implementing token vesting, you have the option of employing linear vesting, where token holders receive a fixed percentage of their tokens on a monthly or yearly basis until full vesting, or opting for a vesting cliff, which designates a specific date for the release of all tokens.
This approach allows for automated distribution thanks to a vesting schedule that defines key terms, such as the vesting cliff and token release rate.
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FAQs
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