If you've been diving into the wild world of Solana meme tokens, you know how quickly things can pump—and how liquidity providing (LP) can either make you rich or leave you holding the bag. A recent X thread from Lochie (@lochiejarvis201), a self-proclaimed Sol-Chad and Meteora intern, breaks down a high-risk strategy using Meteora's Dynamic Liquidity Market Maker (DLMM) that allegedly prints 20-30% in pure fees when it hits just right. But heads up: he only pulls this off about 1% of the time, and it's not for the faint-hearted.

For the uninitiated, Meteora is a leading liquidity protocol on Solana, powering dynamic pools that let LPs concentrate their liquidity in specific price ranges—similar to Uniswap V3 but optimized for Solana's speed and low fees. DLMM stands for Dynamic Liquidity Market Maker, which allows for more flexible and efficient LP positions. You can learn more on their site Meteora. And if you're into the community vibe, check out the LP Army on Discord.

Lochie's thread focuses on a play with the SOMBRERO-SOL pair, a meme token that's been making waves. He turned a modest position into a tidy profit in under 15 minutes, as shown in this screenshot from his setup:

Let's unpack his strategy step by step, based on the original thread.

The Starting Point: A Standard Single-Sided SOL Play

Lochie kicks off with his go-to move: providing single-sided SOL liquidity on a pumping token. In simple terms, this means depositing only SOL into the pool, betting that the token's price will dip within your set range, allowing you to collect fees from trades.

He opened positions on every 1-2% dip, staying in range. But as the token kept surging without looking back, he barely earned any fees—just a few bucks. After closing and reopening a couple of times for a net +$1, he realized this wasn't cutting it. The token was on a one-way trip up.

Here's a visual from his thread illustrating the initial setup:

Switching to a Balanced Spot Position

Sensing the momentum, Lochie pivoted. He bought 2.5 SOL worth of the token (SOMBRERO in this case) and paired it with another 2.5 SOL in a spot position. The range? A bold -20% to +40%, skewed towards the upside.

As the token dipped slightly, he earned fees on the SOL side, which came back as more of the token. This is where the compounding magic starts—fees aren't just pocket change; they're reinvestable assets.

Compounding Fees with Bid-Ask for Maximum Upside

The real sauce? Recycling those fees aggressively. With the token hitting all-time highs (ATH) every minute, Lochie claimed his fees and redeposited them into a single-sided Bid-Ask (BA) position, concentrated at the +40% range. Why? To compound at higher price points.

Instead of safely swapping fees back to SOL, he bet on further pumps. And it paid off—the token hit another ATH, selling his compounded fees at the peak.

This screenshot from the thread shows the fee recycling in action:

Why Bid-Ask Over Standard Claims?

Lochie explains the rationale: The safe play is claiming fees and converting them to SOL. His riskier approach uses Bid-Ask to compound upside potential. Bid-Ask in DLMM lets you provide liquidity in a way that's more directional, essentially betting on price movement while earning fees.

The curve he describes looks like an uphill compounding trajectory, as depicted here:

Active Management: The Key to Success

Every 30 seconds or so, he'd claim fees, redeploy into BA, and keep SOL fees as a buffer. This hands-on approach turned 5 SOL into +1.15 SOL profit in a flash. Smaller plays added up to about $10 each, but multiplied, they stack.

The Results and Caveats

In the end, Lochie walked away with a +197% PNL on this short-window trade, as seen in the TVL and metrics. But he stresses: This is high-risk, not financial advice, and do your own research (DYOR). Timing is everything, and if the pump falters, you could face impermanent loss or worse.

If you're into Solana meme tokens like SOMBRERO, strategies like this highlight why platforms like Meteora and Jupiter DEX are game-changers for active LPs. Join the conversation in the LP Army Bootcamp or follow Lochie for more insights.

Remember, meme tokens are volatile—trade smart, and never risk more than you can afford to lose. What's your wildest LP win? Share in the comments!