Meteora Airdrop Guide

Meteora has the potential to become one of the most significant airdrops on Solana, especially with the same co-founder as the Jupiter airdrop. The project aims to enhance liquidity on Solana, crucial for the efficiency of the network. Meteora’s primary mission is to “make Solana liquid again.” The team have confirmed an airdrop of 10% for Meteora users and 2% for memecoin stimulus! Here is a concise guide on participating in this airdrop, and how to use the Decentralized Liquidity Market Maker (DLMM). There are 2 main ways you can participate, the easier way using the dynamic pools, and the advanced using the DLMM. I highly recommend watching the video to fully understand.

Understand the DLMM Concept

The truth is understanding liquidity and especially the term “DLMM” can sound like a foreign language if you’re not already familiar. Trust me. I was once there too. As a result I spent weeks learning and testing how these pools worked and have since generated over $2500 in profit as well as millions of $MET points.

Think of liquidity pools like giant treasure chests where you and others can toss in pairs of assets (like JUP and SOL). These chests enable exchanges to offer swapping features to their users. And to keep you interested in contributing your treasure, you earn a share of the fees collected during swaps. It’s like being rewarded for sharing your toys!

Originally, this concept was pioneered by Uniswap and has since become the foundation of any decentralized exchange. To crank things up a notch, the idea of concentrated liquidity pools was introduced. However, these had their own set of limitations. Enter the Meteora team, who revamped the concept and developed Dynamic Liquidity Market Makers (DLMMs). These new pools are designed to be more efficient and, dare I say, a lot more fun to interact with.

How to Join Meteora Airdrop:

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Liquidity Provision Points
- Traditional LPing: Points are typically earned based on the amount of liquidity you provide. For Meteora, every dollar of liquidity you contribute to a pool accumulates points. The rate is one point per $1 of total value locked (TVL) per day. This is a fundamental way to earn through straightforward liquidity provision.
- DLMM Specific Points: In the DLMM setup, points can be significantly amplified. Beyond the standard TVL points, additional points are awarded based on the fees generated by your liquidity. You earn 1,000 points for every $1 of fees generated daily. This system rewards more active pools and higher fee-generating strategies.
Join the discord to see which pools I’m earning with right now!
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Safe LP Method (lowest points)
Stable Pairs in a normal LP: For pairs like USDC/USDT or SOL/USDC, the risk of impermanent loss is lower, and while the fee generation might be lower compared to volatile pairs, the steady accrual of points through a stable contribution can be a safer strategy for consistent point earning. This is best for beginners and to get familiar with the process.
This can be performed in either the dynamic pools (no management needed simply deposit and wait), or in the DLMM where you set up your own curve.
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Risky LP method (high points)
Using High-Activity Pairs: Engaging with pairs that see higher volumes and thus, higher fee generations can exponentially increase your point earnings. The DLMM’s dynamic fee model enhances this by adjusting fees based on market activity. During periods of high volatility and trading volume, the fees—and consequently, the points—can surge.
This approach, however, comes with its risks. High-activity pairs often involve a greater degree of price volatility, which can lead to more substantial impermanent loss compared to more stable trading pairs (all your treasure is swapped for dirt)
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Use the DLMM pool (advanced)
Engage directly with Meteora’s DLMM. You can add liquidity to supported pools (excluding exotic pairs) to earn points. You can use several strategies or watch the video below (HIGHLY recommended):
1. High-Activity Pairs: Engage in pairs with high trading volumes to capitalize on increased fee earnings due to the DLMM’s dynamic fee adjustments during volatile market conditions.
2. Concentrated Liquidity: Utilize DLMM’s ability to concentrate funds within narrow price ranges to increase capital efficiency and fee accumulation.
3. Dynamic Pricing: Benefit from DLMM’s real-time fee adjustments which can enhance earnings in periods of high market activity, offsetting risks like impermanent loss.
4. Bins Architecture: Place liquidity in specific bins aligned with market prices to optimize fee earnings and minimize slippage, improving trade execution for users.
5. Flexible Strategies: Adapt liquidity strategies to market conditions using DLMM’s various configurations like Spot Concentrated, Wide, or Curve strategies to manage risks and maximize returns.
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Maximizing Earnings with Strategic Liquidity Concentration
Concentrated Liquidity: By concentrating liquidity around the current market price in the DLMM, you not only optimize the utility of your capital but also increase the points per dollar invested due to higher interaction rates (swaps) occurring in your liquidity range.
An example is USDC-SOL with SOL at $150. If the range I set is $145 – $155 when the price drops to $145 ALL my sol will be turned to usdc and I will be $10 down. The opposite is true if it rises to $155. However, if I chose a larger range such as $130 – $160 I would still be holding a lot of SOL at $145 and would only be down $5.
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Active Management for Optimal Points Earning
Regular Adjustments: Regularly reviewing and adjusting your liquidity positions in response to market movements and price updates within the DLMM can help maintain an optimal position for earning fees and thus points. This active management is crucial, especially in volatile pairings. I highly recommend adding Meteora to the airdrop tracker and setting a daily schedule to review your positions.
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3-1 Farming strategy
For a 3-1 farming strategy with Jupiter and Sanctum you can buy some JUPSOL on Jupiter, this is an LST which earns an extra 10% yield on SOL but also uses both of these other protocols with points. After this you can deposit your JUPSOL onto Meteora and accumulate points too!
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Implement a DCA Strategy Using Liquidity Pools
For more advanced users, consider setting up your liquidity provision to act as a dollar-cost averaging (DCA) strategy. This can be effective in volatile pools where you might convert one asset into another across a specified price range while earning fees.
Need some help? simply watch the step-by-step video below or join our discord.

Join Airdrop

Detailed Explanation of DLMM Strategies

Meteora’s Dynamic Liquidity Market Maker (DLMM) offers an advanced toolkit for liquidity providers (LPs) aiming to maximize their participation in airdrops and improve their trading outcomes. Here’s an in-depth look at the strategies:

Concentrated Pools

Pairs like USDC/USDT or SOL/bSOL always operate within the same range. These pairs might not be the most thrilling, but there’s no issue with impermanent loss (IL) since both tokens have similar values. So, we can afford to set a very thin range to maximize fees. If the price goes out of range, you simply close the position, swap half of the balance, and open a new position with a new range. It’s like rearranging your treasure chest to fit more gold!

Let’s use the USDC/USDT pair to illustrate. Imagine looking at the trading pair chart over three months. You’ll notice the price mostly dances between 0.999 and 1.001. The bar on the left shows the volume for each pricing range.

The goal here is to set the pair bins that the pool will use to swap tokens. Because you want your bins to be as efficient as possible, you’ll set bins only for the range that matches where the trading volume happens. It’s like placing your treasure where the pirates (traders) are most likely to find it.

By doing this, your pool will almost always work at high capacity. If you’re up for some frequent tweaking, you can focus even more by using only 2 to 4 bins. This means more work on your part (since once you’re out of range, you must withdraw and swap half of your tokens to set up a new pool), but the fees are collected much faster this way. I’ve seen a 2x ratio between a 4-bin DLMM and a 12-bin DLMM.

Another option is to use more bins but fill them using the curve strategy proposed by Meteora. It’s like having a well-organized treasure map to ensure you get the most loot!

I’ve used these strategies to make very high gains, especially with high-risk coins. It’s like finding hidden treasure – a bit risky, but the rewards can be massive!

Correlated Tokens

Suitable for beginners or those who prefer minimal rebalancing. This strategy covers a broader price range, providing a safety net against market volatility and ensuring a continuous fee stream.

Spot: Ultra Wide

Extends liquidity across a wider price range, reducing the need for frequent rebalancing and accommodating larger market shifts. It’s best for LPs who prefer to set wider boundaries to capture long-term market movements.

Curve

This strategy balances concentrated and distributed liquidity approaches. It’s best for those who can handle frequent adjustments and is particularly effective for pairs with mild price fluctuations.

Bid-Ask

Tailored for LPs comfortable with high risk. It focuses on capturing fees within a narrow price range around a specific market price, requiring continuous rebalancing to remain effective.