🧵 Ultimate @MeteoraAG DLMM Strategy Guide: 100/2% vs. 20/0.2% Pools 💎 In this thread, we’ll break down: - How each strategy works. - When to choose one over the other. - The conditions needed to make them print fees. By the end, you'll master these strategies like a pro! ☄️
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1/ How these strategies work : 💡 20/0.2% Pools - Built for low fees (0.2%) and high-volume tokens. - Perfect for mid-to-large cap tokens ($30M - 1B MC) with high frequency swaps. - Strategy thrives on tight price ranges where tokens trade consistently. - 2/3+ Position needed.
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2/ 🔹 100/2% Pools - High-fee pools (2%) designed for volatile tokens. - Spreads liquidity to capture wide price swings. - Fewer swaps needed to make profits due to the larger fees. - Great for: volatile tokens that move BIG. - Jack of all trades pool, will explain later on.
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3/ 🛠️ Key Differences: - 20/0.2% = Frequent fees, high volume, multiple positions (RANGE). - 100/2% = Big fees, wide volatility. The choice depends on token behaviour and market conditions. Want tight, frequent trades? Go 20/0.2% Chasing big swings? 100/2% is your friend. 🚀
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4/ General Conditions to Watch For 1️⃣ High TVL in the Pool: More TVL means less slippage for swaps, encouraging traders to use the pool. 2️⃣ Market Sentiment: Volatile market conditions favor 100/2% pools. Stable, range-bound conditions or very high volume favor 20/0.2% pools.
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5/ 3️⃣ Token Longevity: Avoid "degen" tokens unless you're high risk tolerant. 🚨 These can quickly lose volume or even rug. Instead, focus on established tokens with strong communities and real use cases. These provide steady activity and lower the chances of sudden loss
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6/ The Secret Sauce to Making These Strategies Print 💸: - 20/0.2% Pools These pools thrive on high volume and consistent trading. Here’s what to target: ✅ Market Cap (MC): Focus on tokens with more than $30M MC This range offers steady volume without wild price swings.
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7/ ✅ Volume: - Look for daily trading volume > $5M (higher is better) - More swaps = more fees, so frequent activity is key ✅ Token Behavior: - Ideal for tokens with ranging prices or mild fluctuations. - Use 3+ positions to cover a broader range and capture fees
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8/ 100/2% Pools ⚡ Work best with volatile tokens and big price moves. Here’s what to look for: ✅ Market Cap (MC): - Smaller caps can offer higher volatility but come with more risk. Proceed accordingly to your risk tolerance 🚨 - A decent filter would be 2M MCap minimum.
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9/ ✅ Volume: - Look for 5min trading volume of $15k+ and 120k+ on the hourly. The more the merrier. ✅ Token Behavior: - Best for tokens with high volatility. - Best suited for BidAsk strategies. DCA in with one sided position and BidAsk Flip for the💰.
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10/ End of 🧵 If you want to learn more about 20/0.2 pools I suggest you read @NaojNc from @thegoosedao strategy:
1/5 - I've been asked a lot about my 20-bin strat lately, so here it is! Sharing my take on this insane strategy, why it works even in a volatile market, and how I use it on DLMM pools. Let's dive in! 🧵
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@narkokek @MeteoraAG Great threat! I prefer 20/0,2% for stablished coins, as its no time consumimg and easy to let go sleeping, and 100/2% for new coins with higher volatility
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@narkokek @MeteoraAG Ohhh I saw on the discord earlier!!! Glad I have found your thread!! This is a good read!
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@narkokek @thegoosedao @MeteoraAG You nailed it bro. I love this explanation very easy to understand.
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@narkokek @MeteoraAG Great thread, Narko! Super helpful for newbies like me. What market indicators do you usually use?
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@bigxrain @MeteoraAG RSI, MACD, Volume. I also search on twitter and use these tools :
USE TOOLS! USE TOOLS! USE TOOLS! My favourites to check bundles and rugs: https://t.co/7htmkZLQhT
https://t.co/cKvxOGQEyn
https://t.co/JnJ2fFRa2j
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