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Earn Fees as a Liquidity Provider Without Timing the Market: Mythical Potato's Insights on Meteora DLMM

Earn Fees as a Liquidity Provider Without Timing the Market: Mythical Potato's Insights on Meteora DLMM

In the fast-paced world of meme tokens on Solana, timing the market can feel like chasing a pirate's treasure—exciting but often elusive. But what if you could earn steady profits without predicting the perfect buy or sell moment? That's the gem shared by @_mythicalpotato in a recent X thread that's buzzing in the crypto community.

The thread kicks off with a straightforward truth for liquidity providers (LPs): "As LP, the sooner we accept that we cannot time the bottom or top of any tokens, the better." Instead of stressing over peaks and valleys, focus on "printing fees" in between. And shoutout to @MeteoraAG for making this strategy a reality with their Dynamic Liquidity Market Maker (DLMM) tool.

Mythical Potato's DLMM profit screenshot for hero lala-SOL token

Take a look at the screenshot from the post—it's a vivid illustration of success. Here, Mythical Potato showcases a quick 7-minute trade on the "英雄拉拉-SOL" pair (that's "Hero Lala-SOL" for non-Chinese speakers), racking up a tidy $947.94 profit. The setup includes a total value locked (TVL) of $3,729.71, with bin steps at 100, a base fee of 1%, and an impressive PNL of +25.42%. This isn't about holding tokens long-term; it's about providing liquidity in a pool and earning fees from trades happening within your range.

Mythical Potato doesn't stop there. In a follow-up, they explain the compounding magic: "I then take those fees earned to open another position that prints more fees. This way, i have lesser risk exposure and only playing with the fees earned." It's like reinvesting dividends in stocks, but turbocharged for the meme token scene. By using only the earned fees for new positions, you're essentially playing with house money, minimizing your initial capital risk.

Follow-up screenshot showing fee compounding strategy in DLMM

This approach is particularly gold for meme token enthusiasts. Meme coins like Hero Lala often see wild volatility, drawing in hordes of traders. As an LP on platforms like Meteora, you capitalize on that trading volume through fees, without betting on the token's long-term value. DLMM takes it up a notch by allowing dynamic adjustments to your liquidity positions, optimizing for fee generation in fluctuating markets.

The thread has sparked reactions from the community, including a nod from Meteora itself: "LP Army out here printing once again.🔥" Other users chimed in with congrats and their own tips, like selling at the mid-range to lock in gains. It's a testament to how tools like DLMM are democratizing advanced strategies for everyday blockchain practitioners.

If you're dipping your toes into Solana's meme ecosystem, strategies like this can help you build a more sustainable portfolio. Check out the full thread here and consider joining communities like LP Army on Discord for more insights. Remember, while fees can add up, always do your own research—crypto waters can be choppy!

For more on meme token strategies and the latest Solana news, stick around at Meme Insider. We've got your back with guides, reviews, and knowledge to level up your blockchain game.

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