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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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Meteora (Types of Strategies) Yield Farming

In the previous "Cast," I shared important information about how "Meteora" works in basic terms, the Step Asset, fees, and all those basic details that, even though they are basic, are still really important.

This time, I'll talk about the three types of dynamic strategies offered by Meteora, which help concentrate liquidity depending on market circumstances. To carry out a strategy, you must at least know how to read a chart in a basic way.

What I recommend for applying strategies is to know (supports, resistances, and trends). If you know where you are and where you are going, applying a farming strategy will be very easy. Once you know the theories, you will see that it is easier in practice.

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Final note:

The ones I use most often are SPOT and BID ASK, as they maximize rewards. Of course, there are other strategies that can be applied; basically, it's about playing smart with your funds.

Personally, I'm not that "Degen" when it comes to choosing tokens, but you can work with any type. You just have to take certain parameters into account when looking for them, but I'll talk about that in the next cast.

Types of strategies

- SPOT: This strategy is ideal for maximizing commissions within a set range. Basically, if our analysis of the chart for the token pair we are interested in leads us to believe that the price will fluctuate within that range, we can apply the SPOT strategy, as our liquidity will be distributed equally across the entire range.

- CURVE: This strategy concentrates all liquidity in the center of the established range. Basically, if we are trading with stable coins, applying this strategy would be excellent for maximizing commissions, since the price will not fluctuate with much volatility, making it ideal for these cases.

- Bid Ask: I would say this is my favorite strategy, although we need to know how to use it to avoid incurring losses. Basically, this strategy concentrates liquidity at the extremes of the range, ideal for applying DCA, buying or selling a token while earning commissions.

Continue 👇👇