Kanye West just shook up the crypto world by dropping his YZY meme coin on the Solana blockchain. If you're into meme tokens, this is big news—Yeezy's stepping into the decentralized space with a token that's already buzzing with high market caps and wild trading volumes. But beyond the hype, savvy liquidity providers are jumping in to capitalize on the action, using advanced tools to farm fees like pros.
One such player is Bradydon, co-founder of HawkFi, a Solana-based platform that helps liquidity providers (LPs) optimize their positions on DEXs like Meteora, Orca, and Raydium. In a recent X thread, Bradydon shared his strategy for providing liquidity to the $YZY/SOL pool, highlighting how he's using Dynamic Liquidity Market Maker (DLMM) features for high-frequency liquidity (HFL).
What’s DLMM and High-Frequency Liquidity?
For those new to this, DLMM is a type of automated market maker on Solana that allows LPs to concentrate their liquidity in specific price ranges, similar to Uniswap V3 on Ethereum. Think of it as placing your funds in "bins"—narrow price buckets where trading happens most. High-frequency liquidity takes this up a notch by frequently adjusting those positions to chase fees from volatile trading.
Bradydon started with a 10-bin range but tightened it to 5 bins as the $YZY price consolidated. This move concentrates liquidity even more, boosting fee earnings during sideways market moves. He's also using real-time rebalancing to keep things optimized without manual tweaks.
In his earlier post, he detailed the setup:
- 100-bin step in a 1% pool (referring to the fee tier or range step).
- 0-minute auto-rebalance (AR) up and down, meaning instant adjustments.
- Rebalance across -4/+4 bins.
- Swapless mode (avoiding unnecessary swaps to save on fees).
- Auto-accumulate SOL (converting earned fees back to SOL automatically).
This setup is all about efficiency in a hot meme token launch where volume spikes can lead to serious fee generation.
Early Fee Earnings: The Proof in the Pudding
And the results? Bradydon posted a screenshot showing over $1,171 in total fees earned all-time—impressive for a token that's barely a day old. Here's the visual:
With $YZY hitting a $2.7 billion market cap shortly after launch and trading volumes in the hundreds of millions, it's no wonder LPs are flocking in. Tools like HawkFi make it easier to automate these strategies, reducing the risk of impermanent loss while maximizing yields.
Why This Matters for Meme Token Enthusiasts
Meme coins like $YZY aren't just about hype; they're opportunities for blockchain practitioners to test and refine liquidity strategies. Solana's low fees and fast transactions make it ideal for this kind of high-frequency play. If you're looking to dip into LPing for meme tokens, start by checking out platforms like HawkFi or exploring DLMM on Meteora.
Keep an eye on $YZY— with Kanye’s brand backing it, including plans for Ye Pay and YZY Card integrations, this could evolve beyond a simple meme into a full crypto ecosystem. For the latest updates, follow Bradydon on X or dive into Solana's meme scene right here on Meme Insider.
Stay tuned as we break down more launches and strategies to help you level up in the meme token game!