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Basics of Meteora and DLMMs
To begin this series of Cast, I will start with the basics about what is the dynamic-concentrated liquidity offered by Meteora:
1. Bin Step: As I commented the concentrated liquidity in Meteora is dynamic, so the price ranges are already pre-established and these ranges are divided into what are called Bin Step, in simple words, the lower the Bin step, the smaller the range, and the higher, the larger the price range.
Fee: This is the percentage that is charged for each exchange that is made in the pair of coins you choose, this is very easy to understand and although it is not so relevant it is important to know it, since most investors seek to exchange in the one that charges less fee to pay less and get more tokens.
3. TVL: This is basically the liquidity that the token has, it is essential to know it because our profitability depends a lot on it and that the token is not a scam.
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To finish this first part of a series of "Cast" that I will be doing about this, basically I want to show you 2 things:
1. In the first image we observe the data that I explained above, but we can see them a little clearer, including the amount in "$" of the fees that have been paid in this pool, if we take into account that this pool has paid $8k and has an LTV of more than $6M, it means that the daily profitability is quite low, but this also reflects the low risk it has, which means that it is safer to invest here than in others.
Note: Although I will explain later how to approach memecoins and lower the risk by avoiding exposure to unfamiliar currencies.
2. Finally, I wanted you to see the 2nd image, where I show the strategies that can be used to concentrate the liquidity that we place in several points, and see the price range that has a Bin Step of 4, which is very small, if you see it is 1.35% below and 1.37% above. 0 reply
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