In the fast-paced world of meme coins, providing liquidity—often called LPing—can be a lucrative way to earn fees, but it comes with risks like rug pulls, where developers or insiders suddenly drain the liquidity pool, leaving investors with worthless tokens. Drawing from a insightful thread by DeFi enthusiast @SwannyNFT on X, here's a breakdown of practical steps to filter coins and stack the odds in your favor before jumping in.

Swanny, a content creator and LPing specialist building at @rafffle_dao, shares his routine inspired by the @met_lparmy community on Meteora. While no method is foolproof, these checks can significantly improve your win rate, especially in degen mode—high-risk, high-reward plays on fresh tokens.

Starting with the Basics: Target High-Volume Coins

Focus on coins with a market cap (MC) above $200,000. Lower than that, the liquidity is often too thin, making it easier for rugs or massive dumps. A higher MC suggests some consolidation and real interest, reducing immediate red flags.

Step 1: Quick Scan with RugCheck

Kick off with RugCheck, a tool that scans for common scam indicators like unlocked liquidity, honeypots (traps where you can buy but not sell), or suspicious contract code. If it flags any major issues, skip the coin entirely—no second chances here.

Step 2: Dive into Wallet Distribution with Bubble Maps

Next, use Bubble Maps to visualize wallet holdings. Look for:

• Large bundlers (groups of wallets buying together, often a sign of coordinated dumps).
• Suspicious clusters that might indicate insider control.

If the distribution looks too concentrated or manipulated, it's a hard pass. Healthy meme coins should show organic spread among holders.

Step 3: Deeper Metrics with GMGN.ai

For a more granular analysis, head to GMGN.ai. Swanny highlights several key metrics:

• Total Fees: Check if the token is generating real trading volume or if it's wash trading (fake buys/sells to inflate numbers).
• Number of Holders: Aim for at least 400. Too few screams centralization; too many early on might be bots.
• Top Holder Ownership: Keep it under 5-6%. Higher means one whale could tank the price.
• MC per Holder: Around $300 is ideal. High averages suggest early insiders ready to dump; watch for a downward trend indicating better distribution.
• Bundler Percentage: Up to 30% is tolerable, but higher could be group buys—context matters.
• Phishing Risk: Set your threshold at 25% or less.
• Insiders: Anything over 5% is a big risk.

If these pass muster, you're in a good spot to consider LPing. Otherwise, monitor for improvements or bail.

Choosing Your Entry Strategy

Once cleared, decide your position:

• Deep Bid-Ask with Full SOL: Provides a safety net by spreading liquidity across price levels.
• Spot with Full SOL: A straightforward buy, but time your exit carefully.
• 2-Sided Spot: Riskier for quick in-and-out trades.

Remember, with tools like Solana's liquidity bins (up to 1,400 levels), you can structure positions to withstand even a 95% drop. Not every metric needs to be perfect, but off vibes mean higher rug potential—opt for deeper LPs or faster trades.

Building Your Own Routine

Losses are part of the game, but habits like these minimize them. Swanny advises creating, testing, and refining your personal checklist until it consistently delivers. Tools like Axiom Exchange mentioned in replies can consolidate these checks into one dashboard for efficiency.

For more alpha on meme tokens and DeFi strategies, follow communities like @JupiterExchange and explore resources on Meme Insider. Stay vigilant, and happy LPing—good fee takes ahead!

Check out the original thread on X for the full discussion.