A Complete Guide to Meteora Liquidity Interaction Methods

1. Core interactive goals

1. Earn transaction fees: Accumulate transaction fee income by providing liquidity.

2. Acquire airdrop points:

- For every $1 TVL provided, earn 1 point daily.

- For every $1 earned in fees, reward 1000 points (core airdrop source).

3. Applicable pool types: Limited to Dynamic Pools, DLMM pools, multi-token pools (other pools have no points).

2. Initial preparation

1. Wallet and network:

- Use Solana-compatible wallets (like Phantom).

- Ensure wallet has enough SOL to pay gas fees (approximately 0.01–0.05 SOL per transaction).

2. Token preparation:

- Must hold tokens within the pool (e.g., SOL/USDC, MEME coins, etc.).

- When providing liquidity for a certain token for the first time, you need to approve token permissions (Approve).

3. Full process of adding liquidity

(1) Select or create a liquidity pool

- Option 1: Join existing pools (recommended for beginners)

① Visit [Meteora DLMM page](https://app.meteora.ag/dlmm).

② Filter high yield pool indicators:

- Bin Step (price interval): The smaller the interval, the more concentrated the price range, higher returns but greater risk (e.g., 1–10).

- 24-hour trading volume: Pools with >1 million USD prioritized (high trading volume = high transaction fees).

- TVL (Total Value Locked): Pools with >500k USD are more resistant to volatility.

Example: SOL/USDC pool (Bin Step=1, Fee=0.1%, TVL $120M).

- Option 2: Create a new pool (advanced users)

Applicable scenarios: Issuing MEME coins or obscure tokens.

Steps:

① Click 'Create Pool' → Select Volatile (non-stablecoin) or Stable (stablecoin).

② Input token contract address (Token A is the new token, Token B is SOL/USDC).

③ Set initial liquidity >500 USD (otherwise it will not display on the Jupiter exchange).

(2) Configure liquidity strategy

- Key parameter settings:

- Price range:

- Narrow range (e.g., ±5%): High returns, but prone to failure due to volatility exceeding the range.

- Wide range (e.g., ±74%): Low returns, but resistant to volatility (recommended 'staple strategy').

- Single-sided liquidity:

Only provide one asset (like SOL), the system automatically converts the paired asset.

Example: Single-sided SOL when prices are low (bet on an increase), single-sided USDC when prices are high (protect against a decrease).

(3) Execute add operation

1. Input the investment amount (supports single or dual tokens).

2. Choose liquidity allocation strategy (see the table above).

3. Pay Position Rent (about 0.05 SOL, refundable when withdrawing from the pool).

4. Confirm the transaction and sign.

4. Profit and position management

(1) Fee collection

- Manual collection: Click Claim Fees on the 'My Pools' page.

- Compound interest suggestion: Reinvest daily earnings back into the pool to increase point accumulation speed.

(2) Real-time monitoring tools

1. Official dashboard:

- Portfolio page to view LP value, unclaimed fees.

- Points query: Visit https://geeklad.github.io/meteora-profit-analysis/wallet/ + input wallet address.

2. Third-party tools:

- metlex.io: Input wallet address to analyze position profit and loss, point estimation.

- Alex's DLMM toolkit: Track historical position PnL, identify high yield pools.

(3) Stop-loss and rebalancing

5. Airdrop point maximization techniques

1. Focus on high transaction fee pools:

- Prioritize MEME coin pools (like BOME, WIF), daily returns can reach 100% APR.

- Avoid low trading volume pools (slow point accumulation).

2. TVL and fee balance:

- Small funds (< $1k) → Pursue high transaction fee pools (quickly earn 1000 points/$).

- Large funds (> $10k) → Diversify into stablecoin pools (1 point/$ of stable accumulation daily).

3. Risk-averse pools:

- Verify token contracts (to prevent scam tokens).

- Avoid pools with TVL < $10k or without KOL endorsement.

6. Frequently Asked Questions

- Q: What to do if LP fails?

A: If the price exceeds the set range, the position stops earning fees. You need to manually adjust the range or withdraw from the pool.

- Q: Points not displayed?

A: Confirm if in DLMM/Dynamic pool; if still not, check through external tools.

- Q: How to reduce impermanent loss?

A: Choose stablecoin pair, wide price range (±50%), or adopt 'spot balance' strategy.

> Risk warning: Do not invest funds that you cannot afford to lose. LP earnings are strongly correlated with token volatility, it is recommended to start with stablecoin pools (like USDC/USDT), and then venture into MEME coins after gaining proficiency.