In the fast-paced world of Solana meme tokens, staying ahead means adapting to the latest tools and strategies. Recently, @satsmonkes, a prominent figure in the Meteora AG community, dropped a thread on X that's got everyone talking. It's all about the game-changing 1400 bins update in Meteora's Dynamic Liquidity Market Maker (DLMM) system. If you're providing liquidity for meme coins or looking to dip your toes in, this update could supercharge your profits. Let's break it down step by step, just like satsmonkes did.

First off, what's DLMM? It's Meteora's advanced liquidity providing mechanism on Solana, allowing users to create concentrated liquidity pools with customizable bin steps and fees. Bins are essentially price ranges where your liquidity is active, and the 1400 bins expansion means more precision and flexibility in setting up pools.

The thread builds on an earlier post highlighting how 1400 bins usher in a new era for liquidity providers. Satsmonkes shares his final insights post-update, covering the most profitable pool setups, why some old standards are fading, and tips to thrive in this evolved meta.

Discovering the Most Profitable Pool Setups

After extensive testing, satsmonkes identifies two standout pool types that are crushing it right now.

Pools with a 10% base fee are the stars for quick plays. These shine in two scenarios: jumping into freshly launched meme tokens to scoop up massive fees in the early frenzy, or holding for a day or two to arbitrage price swings. For example, satsmonkes mentions using this on DefiTuna, a token that likely saw explosive early trading – perfect for meme coin hunters chasing those viral launches.

Look at this screenshot from a related post: in just over a minute, a TUNA-SOL pool raked in $848 profit with a 10% base fee and 250 bin step. That's the kind of rapid returns possible when you nail the setup on a hot new token. Total Value Locked (TVL) was around $900, yielding a whopping 94% PnL – talk about efficiency!

On the other hand, for longer-running meme tokens that pump over days, go for 20 bins with 2% or 5% base fees (shorthand: 20/2 or 20/5). The beauty of the 1400 bins update? You can now tailor the price range precisely, avoiding unnecessary exposure and maximizing fee capture.

Why 100/2 Pools Are Now Outdated

Remember when 100 bins with 2% fees (100/2) was the go-to setup for many liquidity providers? Well, according to satsmonkes, it's time to retire it. The smaller bin sizes in setups like 20/2 allow for tighter concentration, which translates to higher fee accumulation over the same range.

With the ability to customize ranges freely thanks to 1400 bins, the broader 100/2 loses its edge. It simply gets outperformed in fee generation, especially in volatile meme token markets where price action can swing wildly. If you're still using 100/2, you might be leaving money on the table.

How to Capitalize on the New Meta

Satsmonkes lays out his personal playbook, which is gold for anyone trading meme tokens on Solana. For quick in-and-out trades on tokens under an hour old – think those low market cap "shitters" that can 10x overnight – stick with 10% base fee pools. This tight-range strategy, inspired by community members like @_mythicalpotato, focuses on high risk-reward ratios.

Check out this meme from his earlier thread on tight-range spot/curve strategies – it's a fun way to visualize the balancing act involved. For positions you plan to hold intraday or overnight, switch to 20/2 or even 20/0.2 with a wide range, like -50% to -70% from current price. This setup lets you weather volatility while steadily collecting fees.

One pro tip from the replies: if you're using a hardware wallet like Ledger, be prepared for multiple transaction approvals with wide bin positions. Satsmonkes advises using a hot wallet for speed during active trading, then securing funds later.

This update isn't just technical jargon – it's a shift that empowers liquidity providers to adapt faster in the meme token arena. Whether you're farming fees on the next big Solana pump or arbitraging established pairs, these insights from satsmonkes could be your edge.

For the full thread and community discussion, check it out here. Stay tuned to Meme Insider for more breakdowns on blockchain tools that boost your meme token game. What's your favorite DLMM setup? Drop a comment below!