Step-by-Step Instructions for For Setting Up Meteora DLMM Pools for maximum Profit
Creation Date: February 26, 2024
Created By: Jade Of Wallstreet
Meteora introduced its points system on January 31st, and since then, it's been quietly running in the background. Yes, points are being tallied for total value locked and fees earned. However, the Meteora team has unveiled a neat trick to boost your points, essentially offering a two-for-one deal: the more fees you rake in, the more points you accumulate. It's a win-win situation.
Meteora has already pioneered an innovative Liquidity Management Solution called the 'DLLM' to provide users with enhanced flexibility. But mastering the art of earning substantial fees on the DLMM pools does come with a bit of a learning curve.
Personally, I've tapped into this system on Meteora and managed to pocket over $300 in less than a week, with an initial liquidity investment of less than $1500. And now, I'm here to guide you through the process, step by step, so you can do the same.
However, it's crucial to be aware of the potential impermanent losses that may occur from providing liquidity to volatile assets. Additionally, staying active and vigilant is key to managing your pool effectively, especially when prices fluctuate outside your liquidity range (known as bin steps).
#Goto Meteora on Mobile or PC
#Connect your solana wallet
1. Click on DLMM
2. Click on JUP Bonus Pools ✨
3. Click on JUP-Bonk. (We chose this there's less TVL and more room for crabs to play )
4. Click on Add Position
5. Click on Curve
6. Drag highlighted buttons (1 bin step behind, 2 bin step forward because we anticipate there will be more uptrend swaps from current price, however we did'nt go further than that because we want to maximize the swaps in these price regions to earn more fees)
7. This strategy will allow you deposite single assets in this case JUP, however we need a small amount of BONK to cater for the 1 bin step we have going backwards on the range above. take a 2-10 ratio for this . First add all the bonk by clicking Max on Bonk , this will add some Jup, don't worry about that.
8. Click on Add Liquidity
9. Repeat Step 7 in the same pool, by adding the rest of your available JUP (To do that just click Max on JUP), This will trigger an error message "Insufficient balance for Bonk" Ignore this and simply delete all the figures in the bonk placeholder and Click "Add Liquidity".
That's how you create a perfect DLMM pool.
But that's not where you this ends. As price fluctuates, swaps tend to step outside your liquidity range pretty fast, for this pool I create a new pool 2-3times on a volatile day.
How To Manage A DLMM Pool On Meteora?
The range above you can see the prices of each bin step, whenever the current price steps outside the last bin left or right then its time to create a new pool. When this happens you will see a hazard sign on your pool.
To create a new pool goto your pool and click withdraw
Claim your rewards manually & sign the tx.
Click 100% on the withdraw placeholder
And then click 'withdraw Liquidity' it's very important that you DO NOT CLICK "Withdraw & Close" otherwise the algorithm might not be able to calculate your corresponding points correctly.
That's all. Give this blog a follow if this tutorial was helpful. I will do a video tutorial later today on my twitter.