Meme Insider
Hey there, meme coin enthusiasts! If you’ve been scrolling through X lately, you might’ve stumbled upon an eye-catching thread by moludotsol that breaks down the basics of Dynamic Liquidity Market Making (DLMM) using Meteora AG. This thread, posted on June 29, 2025, is a goldmine for anyone looking to dip their toes into the world of DeFi trading, especially with meme tokens. Let’s unpack it step-by-step in a way that’s easy to follow, even if you’re new to this space!
What’s DLMM All About?
The thread kicks off with a fun, cartoonish image of a green alien trader hard at work, surrounded by charts and a fiery planet shouting, “We build liquidity pools.” This sets the tone for an engaging dive into DLMM, which stands for Dynamic Liquidity Market Maker. In simple terms, DLMM is a fancy way of saying you can act like a market maker—someone who provides liquidity to trading pairs—without needing massive capital. It’s all about using volume and price ranges to earn fees, and it’s super popular on the Solana blockchain.
The image itself is a vibe—check it out here:
Breaking Down the Basics
So, what makes DLMM tick? According to moludotsol, it’s all about placing your liquidity in specific “bins”—think of these as price range slices where your assets sit. The more bins you use, the wider your price range, making it a safer but less active strategy. Fewer bins mean a tighter range, which is more aggressive and can rack up fees faster. Plus, you get to set your own fees! Higher fees (like 5%) work well for volatile new meme coins, while lower fees (1-2%) suit stable, high-frequency trades.
Fees are the reward you earn when traders swap tokens within your bins. The thread suggests starting with 100-125 bins for new meme coins to balance risk and reward. It’s a clever way to dip into the action without getting burned—perfect for beginners!
Setting Up Your First Position
Ready to jump in? Molu walks us through setting up a DLMM position on an existing pool. Here’s the quick rundown:
- Connect your wallet and pick a trading pair.
- Choose your fee level and number of bins.
- Select a strategy—Spot, Curve, or Bid Ask—and create your position.
Once your position is live, you can claim fees anytime or wait for the price to swing back into your range. It’s flexible, which is a big plus for experimenting with meme tokens that can be pretty wild!
Two Beginner-Friendly Strategies
Molu shares two strategies to get you started:
Bid Ask: This is the “low-risk” option. Use “Bid” to buy a token cheaper or “Ask” to sell higher. It’s great for slowly building your position (called DCA, or dollar-cost averaging) while earning fees. Set a range, add liquidity to SOL, and let it ride—ideal if the token price dips but stays in your range.
Spot: This is more hands-on. You provide liquidity for both tokens in a tight range, mimicking a limit order while earning fees. It’s riskier but perfect for short-term trades when the price is stable. Turn on Auto-fill, set your range, and you’re good to go!
Why This Matters for Meme Coins
Meme coins thrive on hype and volatility, and DLMM lets you capitalize on that. Whether you’re trading a new token or riding a trend, these strategies help you earn fees while managing risk. Molu’s tip to start with high fees (5%) for new coins and adjust later is a smart move to avoid getting caught in a “rug pull” (when a project suddenly crashes).
Join the Conversation
This thread has sparked some buzz, with users like SLICK🐡 calling moludotsol the “threadgod” and others thanking them for the insights. If you’re curious, drop a question on the original post—molu’s open to feedback!
Final Thoughts
DLMM with Meteora AG is a game-changer for meme coin traders, especially on Solana. This thread is a fantastic starting point, blending humor with practical advice. Bookmark it, follow moludotsol for more tips, and dive into the Meteora ecosystem. Ready to build your own liquidity pool? Let’s get trading!
Have questions or want to share your DLMM experience? Leave a comment below or join our community at meme-insider.com!