The meme wave is not only PVP, but "Mining" is also a good choice

Original | Odaily Planet Daily (@OdailyChina)

Author | How to (vincent31515173)

As the Mme coin frenzy continues to heat up, many investors are caught in the short-term PVP mode of big pump and big dump. This high-risk market attracts those who seek quick returns, but it also exposes most people to greater fluctuation risks. For investors who value stable returns more, participating in Liquidity Providing (LP) is becoming a path worth exploring.

Therefore, Odaily Star Daily will focus on analyzing two LP platforms - Raydium and Meme Farmer, to help investors discover stable mining opportunities in the Meme wave.

Raydium: Liquidity engine of the Solana ecosystem

Raydium is the largest Decentralization exchange (DEX) on the Solana network in terms of volume, accounting for approximately 60% of the total volume in the Solana DEX market, according to Dune data.

The Liquidity of Raydium is closely related to the issuance of meme coins. In fact, it is not difficult to find that most of the Liquidity pools for Meme coins in the GMGN platform are provided by Raydium. The main reason is the linkage between the Pump.Fun platform and Raydium. Pump.Fun, as the engine for Memecoins on Solana, provides initial Liquidity support for Memecoins when their Market Cap reaches a certain scale, and the Liquidity pool vesting is in Raydium. This concentrates approximately 90% of the Meme coin volume generated by Pump.Fun in Raydium, strengthening its dominant position in the Meme coin market.

As shown in the figure below, most of the LP yields related to MEME are over 1000%. Compared to the on-chain 'fighting and killing', investors with large capital may be more willing to provide Liquidity to earn profits.

Currently, Raydium offers three different types of pools: Standard AMM Pool (AMM v4), Constant Product Market Maker Pool (CPMM), and Concentrated Liquidity Market Maker Pool (CLMM).

Each type of pool has different fee standards, generally divided into Money Laundering, pool creation fee, repurchase fee, and treasury fee.

However, Liquidity Providers of memes should be aware that high Fluctuation may cause Impermanent Loss, leading to a decrease in the value of LP. It is recommended to provide LP for leading projects in different zones of memes. The APY return is relatively lower compared to other new memes, but the risk is relatively controllable.

Meme Farmer: Built on Raydium, community-driven, and not yet audited.

In addition to Raydium, many KOLs have recently posted on social media to promote Farmer.Meme. The platform is a profit platform designed for the Meme economy, providing intelligent LP strategies and innovative ways to help users achieve profits. Its key features are as follows:

Intelligent LP Management: The platform provides intelligent LP strategies to help users easily optimize their returns.

Permissionless pool creation: Users and project party can independently create Concentrated Liquidity Pools (CLMM) or Constant Product Pools (CPMM) without permission, and inject Liquidity into these pools to earn corresponding returns.

Ecosystem Rewards: The platform allows the project party to enhance the income of Liquidity Providers through incentive measures, attracting more funds to participate.

Fair Launch: Farmer.Meme emphasizes that the platform is driven entirely by community users and the project party, avoiding the involvement of venture capital.

Farmer.Meme provides incentives to Liquidity Providers through the issuance of BRRR Tokens. The Token adopts an Inflation model with no fixed supply limit. The platform charges a 10% fee on user earnings, with 50% of it used to repurchase BRRR Tokens and send them to the treasury to support the long-term stability of the platform.

The current LP yield of Farmer.Meme is as follows:

It is worth noting that most pools used by Farmer.Meme adopt a centralized Liquidity pool (CLMM), and the yield is not as high as shown in the figure. Through testing, Farmer.Meme Liquidity Mining has a daily yield of about 10% - the main income comes from the incentive of the platform token BRRR, similar to the LP income of Raydium.

According to KOL 'Randle', the project has not been audited yet, and the underlying pool is Raydium, so most of the assets should be in Raydium.

Farmer.Meme acts as a memes Liquidity providing platform, which can achieve higher yields in the short term compared to other platforms through Token incentives. However, unrestricted supply will inevitably lead to the phenomenon of 'mining and selling', and while short-term profit is feasible, security, especially Wallet authorization, still needs to be followed due to the lack of audit.

Summary: How to profit steadily in the MEME craze?

For users seeking stable investment opportunities in the Meme market, both Raydium and Meme Farmer offer high LP yield potential:

Raydium is more suitable for investors who prioritize security and stability, with its abundant Liquidity pool types and market dominance providing reliable choices for investors.

Meme Farmer is more suitable for short-term high-yield investors, who can obtain higher returns through the Token incentive model, but they need to closely follow the platform's security and the long-term stability of the Token economy.

In addition to the above two platforms, Orca and Lifinity also occupy a certain market share, but the income of memes in them is relatively low. Regardless of which platform investors choose, they should fully evaluate the high Fluctuation characteristics of the meme market and find a balance between income and risk.