Hello!
Some days ago I wrote a couple of posts explaining that I was experimenting on Solana with their DLMM (Dynamic Liquidity Market Maker) pools. I tested it out with the TRUMP memecoin and I managed to lose from 50 to 200 $ depending if you count the dollar value or the value of the Solana I put in.
I tested the strategy of providing liquidity to 2 more memecoins with some interesting volume to try to earn more from the fees than the expected possible impermanent loss. The results were so good with +800$ in profits as the image below shows:
This kind of strategy allows you to earn from the fees in a concentrated liquidity pool in METEORA (The platform). The interesting part is that I only used 1,200$ to earn 800$ in just 7 hours and a half. That's a 67% profit! This strategy allows you to loss less money when the memecoin goes down, but it also earns you less money if the memecoin moons. The good part is that if it trades sideways within your range in a high volume period you can earn a lot of money. That's super interesting! You are betting in the memecoin to have a stable price with a lot of volume.
BONUS: Earning points for the future MET airdrop from Meteora!
I don't recommend anybody to do this strategy unless you understand at a high level what you are doing. It's very very easy to lose the funds when you are trading memecoins. But if done well can be extremely profitable! I told you it was interesting to test it @josediccus 😉
Have a great weekend!
Posted Using INLEO
It's profitable indeed, 800$ is a huge win. I remembered talking about the $150 loss. Turns out you've recovered your loss. This is extremely high risk, but no risk then no rewards.
Yes. Just testing the platform. Have a great weekend!
I'm almost tempted now lol.. hopefully you'll post more updates about it. Have a great weekend too.
Nice profit you made of $800, I also tried trump and lost about 20. Likewise, he who does not take risks neither wins nor loses.
This is very good but it requires a good strategy and great execution. Congratulations on the profit