If you're diving into liquidity providing (LPing) on Meteora, especially for those fresh-out-of-the-gate pools, picking the right bin-step and fee can make all the difference between solid returns and getting left in the dust. A recent tweet from @olawande0x spotlighted a must-watch video by @tendorian9, aka Logical TA, breaking down his go-to strategies. Let's unpack what he shared and why it matters for anyone in the Solana DeFi space.
First off, a quick primer for the uninitiated: Meteora is a dynamic liquidity market maker (DLMM) platform on Solana, where liquidity pools allow providers to concentrate their assets in specific price ranges, known as bins. The "bin-step" refers to the granularity of these price bins—the smaller the step, the tighter the ranges, but it can also mean more bins to manage. Fees, on the other hand, are the cut you take from trades happening in your pool. For new meme token pools, which often see wild volatility and high trading volume right after launch, these choices are crucial.
In the video, @tendorian9 kicks things off by emphasizing the importance of starting strong with new coins. He recommends kicking off with a 5% fee. Why? Because fresh launches pack a punch in volume—traders are piling in, swaps are flying, and that higher fee lets you capture more of the action without getting rugged too easily. As he puts it, "I demand to be paid at least 5% fee to be rugged." It's a cheeky way to say that in the chaotic early hours, you want to maximize earnings while the hype is hot.
On the bin-step front, Logical TA favors wider steps for efficiency. He suggests aiming for around 100 to 125 bin-steps, which might sound technical, but here's the breakdown: A 100 bin-step at 2% could cover a good chunk of price action, but he often leans toward 5% steps for broader coverage. With a 200 bin-step at 5%, or even 125 at 5%, you can span up to 96% of potential price movements with fewer bins, keeping things manageable. This setup minimizes the need for constant adjustments and lets you ride the volatility without overcomplicating your position.
He also touches on practical tips, like consolidating into fewer bins to avoid spreading too thin, and mentions tools like Jito for bundling transactions efficiently. The key takeaway? For new pools, prioritize volume capture over ultra-tight precision—go wide on bins and high on fees initially, then tweak as the pool matures and liquidity stabilizes.
This advice aligns perfectly with the meme token frenzy on Solana, where quick launches can lead to massive pumps (or dumps). If you're LPing meme coins, following these guidelines could help you stay ahead of the curve. Check out the full video embedded in the original tweet for the visuals and deeper dive—it's packed with charts and real-time examples that make the concepts click.
Whether you're a seasoned DeFi farmer or just starting to explore blockchain liquidity, insights like these from community experts keep the ecosystem thriving. Stay tuned to Meme Insider for more guides on optimizing your Solana plays.