Ever launched into a fresh memecoin on Solana and wondered why your liquidity provision (LP) setup feels like it's leaving money on the table? If you've been creating DLMM pools with super low base fees—like 100/2 or 100/1—you're not alone. But according to satsmonkes, a key voice in the Meteora LP Army, this is a classic rookie move that's costing everyone big time.
In a recent X post that's already sparking chats among degens, satsmonkes drops a public service announcement (PSA) that's equal parts hilarious and eye-opening. Picture this: a trippy cartoon of Mickey Mouse, Donald Duck, and Goofy looking like they've just toked up, with the bold text overlay screaming, "CREATING 125/5 OR 125/10 ON FRESH MEMECOIN." It's meme gold, but the message hits hard—stop skimping on those base fees at launch.
For the uninitiated, DLMM stands for Dynamic Liquidity Market Maker, a powerhouse feature on Meteora, Solana's go-to DEX aggregator for concentrated liquidity. Think of it as AMM on steroids: you set price ranges and fees to earn more from trades in your pool. The "100/2" setup? That means a 100 basis point max fee with a 2% base fee. Sounds efficient, right? Wrong—for new memecoins.
Here's the rub: When a token drops, volatility is through the roof. Traders are swapping like crazy, and that means massive fee opportunities. But with a puny 1-2% base fee, you're capping your earnings right when the action's hottest. Satsmonkes nails it: "The loss of potential gains for everyone is massive." Even if you're trying to undercut competitors for volume, higher base fees like 5% or 10% (hello, 125/5 or 125/10) let you rake in ten times the rewards. It's basic math—higher fees on high-volume trades = fatter LP yields.
This PSA quotes a killer guide from L0cc, who's basically the LP whisperer for Meteora pools. Their thread breaks down how to pick the right pool type based on token age and hype level. Pro tip: For day-zero memecoins, crank those base fees to capture the frenzy, then dial 'em back as things stabilize.
The replies are pure community fire. One user pushes for Meteora to lock out fees under 5% in the first hour—game-changer? Another asks for a deep dive on DAMM v2 (that's Dynamic AMM, Meteora's other liquidity beast), and satsmonkes links back to their own epic thread on it. If you're LPing, bookmark that DAMM v2 guide stat—it's loaded with charts and strategies to level up your game.
Bottom line? In the wild world of memecoins, where rugs fly and pumps hit warp speed, smart LPing isn't about being the cheapest—it's about being the savviest. Heed satsmonkes' call, milords: Go 5% or 10% on fresh drops, watch your yields soar, and keep the LP Army strong. What's your go-to fee setup for new launches? Drop it in the comments—we're all in this degen boat together.
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