In the fast-paced world of DeFi on Solana, liquidity providing (LP) strategies can make or break your portfolio. While meme coins grab headlines with their wild pumps, a growing number of traders are turning to utility tokens for more sustainable plays. Enter Razzaer, a seasoned DeFi enthusiast, who recently shared his SPOT strategy on Meteora, emphasizing why utility tokens like $SANA and $VWA outshine memes for long-term LP farming.

The Utility Token Advantage

Razzaer kicks off by highlighting the edge utility tokens have over memes in SPOT LP setups. SPOT, for those new to Meteora, refers to spot market liquidity positions that allow for concentrated liquidity in specific price ranges—similar to Uniswap V3 but tailored for Solana's ecosystem.

Why pick utility tokens? They tend to range trade for days or even weeks, not just hours like hyper-volatile memes. These tokens have real use cases, such as DeFi tools, real-world asset (RWA) tokenization, or AI infrastructure, which provide better price support through actual adoption and community backing. Plus, with market caps in the multi-million range and thinner liquidity pools, you snag a bigger share of trading fees.

In contrast, meme coins often pump hard and dump fast, leading to impermanent loss (IL)—that pesky phenomenon where your LP position loses value due to price swings even as you earn fees.

Setting Up Your Range

Razzaer breaks down his range setup: typically -40% to -80% from the current price, depending on the token's volatility. He opts for pools with 0.2% to 5% base fees, holding positions from hours to weeks. A key tip? Go single-sided with USDC to minimize IL risks, especially since these tokens hold levels better but still generate solid fees from trading volume.

Current Picks: $SANA and $VWA

Diving into specifics, Razzaer spotlights tokens like $SANA—a Solana-based neobank with Visa integration—and $VWA, focused on RWA tokenization. These sit in the $2-7M market cap sweet spot, backed by real teams and products. They're not just hype; they're building actual value, making them ideal for this strategy.

Beating the Meme Coin Hype

Why ditch memes for this? Utility tokens range longer, letting you capture more fees without constant babysitting. There's lower rug pull risk—those scams where devs drain liquidity—since these projects have genuine communities. Mid-cap utilities face less LP competition, meaning a fatter fee slice for you. And price action? It's more predictable, tied to real news like partnerships or product updates.

Risk Management and Planning

Of course, no strategy is foolproof. Razzaer stresses finding these gems through niche communities, tools like Fabriq Trade, or following sharp minds like @DEFImoneysniper and @hormigasdefi. Use technical analysis (TA) for entries at support levels, and exit if volume dries up or fees dip below your target. Start small, scale up, and join project Discords or Telegrams for updates.

Sometimes things don't pan out—close for a loss or switch to bid-ask strategies. But with patience, this approach can print steady gains in the Solana DeFi space.

At Meme Insider, we're all about decoding the meme token world, but insights like Razzaer's show how blending utility plays can level up your game. Whether you're a meme chaser or DeFi pro, strategies like this highlight the evolving landscape of blockchain liquidity. Dive in, but always DYOR—do your own research.