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There has been some recent buzz about certain security features related to RugZombie, and whether this project is SAFU. So what's the deal? As always, the undertakers are here trying to be #goodzombie. But first, let's talk of the "evolution of the rug pull".

Perhaps one of the most infamous Rugs was Bitconnect. Or meerkat finance. Honestly, there are too many to count.

The Hard Rug Era

The first iteration of rug pulls were considered "hard rugs". By exploiting a feature in the code (most famously the "migrator code"), malicious developers began draining liquidity from their project and leaving the communities in a panic. Notable projects with Migrator Code still intact are pancakeswap and sushiswap. Many newer clones of these projects exploited this feature to the detriment of their users. Obviously the code itself is not the issue but what the devs intend to use it for.

The Honey Pot Era

The next iteration became the "honeypotting" era where projects boasted of time locked migrator codes, duping their communities into a false sense of assurance around the migrator code. Goose Finance wrote a great medium post explaining how this happens, but basically while the migrator code appears to be under time lock, there is a huge back door open. 

Goose was the first to famously remove the "migrator code" offering a "safer investment" as the project could not be hard-rugged. Famously, one of the developers at pancakeswap had much to say on this (you can read here). TLDR: The purpose of this code is to upgrade contracts in the future with newer versioning. For projects building long term, this is a key feature. Of course it can be maliciously activated, but as was demonstrated in the "honeypotting era", and in subsequent eras (as you will see below) it was not bastion of protection that it was meant to be. Removing this feature is not without consequence, however led to;

The Soft Rug Era  

There is no problem with a developer choosing this feature to be removed, it is their right to build their product how they choose. RugZombie is committed to building, even if that makes us unpopular. For us, the concern is valid of course, and future users have every right to ask about this. But we have long term growth planned and will use that feature to upgrade contracts. TLDR: we have a migrator code in our contract currently.

Projects additionally began to lock their liquidity as a good faith effort as well, and many of them burned the keys and made the liquidity inaccessible to their developers.

But developers began to get creative: by creating developer wallets, or multiple wallets with certain percentages of the supply, they could lock their liquidity to give a sense of trust to the community, but when the time was right, dump their personal tokens on the market and abandon the project. This is perhaps the most common rug pull of all because it is so hard to detect.

Any time a new security measure has been taken, evil devs have found creative ways to exploit their communities. 

The Aftermath - The Era of Distrust

The Binance Smart Chain has been notoriously noted as the "scam chain of defi" due to the proliferation of these activities. It has unfortunately led to the era of distrust. As a consequence, BSC users are forced to see rug-pull as the default. (In some ways, this self-protective measure is quite a good posture to have. Projects need to earn the trust of their users, and token holder need to be incentivized to do their own due diligence.) Yet this has also had the unintended consequence of sacrificing some utility, building and innovation for the sake of community trust.

One example of the unintended outcome of this distrust is that many projects with locked liquidity and burned wallet addresses are now forever locked into pancakeswap's v1. They are at the mercy of PCS for their token liquidity.

There is an ever increasing expectation that all projects lock liquidity and remove migrator codes, and most new projects now do that by default. Of course, RugZombie loves to see builders build, and our devs are big supporters/users of a number of projects that have these security measures, but we just have to ask the question: has the number of rug pulls decreased or increased in the wake of these new features?

It seems that after all, ruggers are gonna rug, and intent is the criminal issue here. 

What about RugZombie?

RugZombie has chosen to leave the migrator code in our contract.

However, we are considering locking our migrator in a time lock as a compromise for our community that is concerned about this. But we are keeping the migrator code for future versioning as it is useful function as of now.   

We also have not locked our initial liquidity (which was ultra low to begin with so not truly an issue). We would warn anyone wanting to use our platform to do their due diligence and if you are worried about these features, you do not need to partake in our platform.

We hope we will build trust and confidence with our community along the way, and hope we can earn your trust eventually. But, obviously the choice is yours. 

This is not financial advice, but good crypto behavior includes doing your homework, managing your risk according to tolerance, and having healthy expectations any time you interact with a newer project. 

Thanks for reading, zombie on.

The Undertakers

Some KEY READING 

https://medium.com/goose-finance/goose-finance-first-to-remove-rugpull-migrator-code-d6f415070783

https://rugwarnings.com/category/rugenomics/

https://www.reddit.com/r/pancakeswap/comments/lmtj7g/does_pancake_swap_have_a_backdoor/

https://medium.com/goose-finance/the-honeytrap-a-story-about-a-migrator-behind-timelock-397b889ab780

The information shared in these docs, our roadmap, our lite paper and white paper, and social channels such as this blog, is not financial advice and should not be misconstrued as such. The primary purpose of these documents is to provide potential token holders with pertinent information in order for them to thoroughly analyze the project and make an informed decision. Engaging in cryptocurrency projects involves substantial risk and it is strongly advised that you consult with a financial professional prior to your participation.

These documents do not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction.

Neither RugZombie nor any of its contributors or creators shall be held liable or responsible for any errors or omissions concerning this project or for any damage you may suffer from your participation or as a result of failing to seek competent financial advice from a financial professional. This white paper is not in any way intended to create or put into implicit effect any elements of a contractual relationship.