In the fast-paced world of meme tokens and decentralized finance, staying ahead of risks like rug pulls is crucial for anyone providing liquidity. Recently, Armstrong from the Meteora team shared a insightful thread on X about using GMGN.ai to make smarter LP decisions on Meteora. If you're part of the LP Army or just dipping your toes into Solana-based trading, these five checks could save you from potential losses and help maximize your profits.

Armstrong, a technical writer at Meteora and SonicSVM, drew from his experiences during a market downturn to highlight these tools. GMGN.ai is a powerful platform for analyzing token metrics, and integrating it into your routine can give you an edge. Let's break down each check step by step.

1. Total Fees: Spotting Bot-Driven Activity

The total fees metric offers a window into a token's real trading activity. It measures the fees generated from transactions, which should align with the 24-hour volume. If the fees are suspiciously low compared to the volume—like a $317k volume yielding just 0.023 SOL in fees—it often signals bot farms inflating numbers rather than genuine user interest.

Why does this matter for LPs? High bot activity can lead to artificial pumps followed by dumps, increasing rug pull risks. Look for tokens where fees reflect organic trading; they're generally safer bets for providing liquidity and earning steady rewards.

2. Top Ten Holders: Avoiding Concentration Risks

This check focuses on the distribution of token supply among the top 10 wallets. If these holders control over 30% of the total supply, the token is vulnerable to manipulation by a small group—think price swings or sudden sells that tank the value.

For liquidity providers, diversified ownership means more stability. Scanning this on GMGN.ai helps you steer clear of projects where whales could pull the rug, ensuring your LP position isn't at the mercy of a few big players.

3. Phishing Percentage: Detecting Artificial Distribution

Phishing percentage tracks how many wallets received tokens without purchasing them. A bit of this is normal at launch, as developers might airdrop or distribute for marketing. However, if it exceeds 30%, it could indicate manipulative tactics like fake distributions to pump prices artificially.

As an LP, high phishing levels are a red flag for potential scams. Keeping this metric in check protects your investments and aligns with Meteora's emphasis on secure, dynamic liquidity pools.

4. Bundler Percentage: Watching for Coordinated Buys

Bundlers refer to multiple wallets buying a token in the same transaction, which can suggest organized manipulation. Historically, anything over 30% was alarming, but with community-driven trades on the rise, the threshold has shifted—be cautious above 60%.

This insight, credited to Tendori, helps LPs identify if trading volume is genuine or engineered. On platforms like Meteora, where LP rewards depend on real activity, avoiding high-bundler tokens can lead to more sustainable profits.

5. Rug Percentage: Evaluating Dev History

Finally, the rug percentage assesses the developer's track record. If they've rugged previous projects, the likelihood of it happening again is high. This straightforward metric pulls from historical data to flag risky creators.

For anyone in the meme token space, checking this before LPing is non-negotiable. It empowers you to support reputable devs and avoid repeat offenders, fostering a healthier ecosystem.

Armstrong wraps up by encouraging ongoing learning within the LP Army community. Tools like GMGN.ai, combined with Meteora's robust platform, make it easier to navigate the volatile world of meme tokens. If you're ready to level up, check out Meteora's website, the LP Army hub, and GMGN.ai for hands-on analysis.

Whether you're a seasoned trader or new to Solana, incorporating these checks can transform your LP strategy. Stay vigilant, and happy providing!