🏓Ping Pong DLMM
What is Ping Pong DLMM?
Ping Pong is a classic quant trading strategy with two earning objectives: 1) Profit from spreads by alternating buy-low & sell-high, and 2) Generate fees from bin-optimized DLMM
For the first time, Ping Pong quant strategies are possible on Meteora due to HawkFi's fast and swapless rebalance automations
👉 See thread: https://x.com/bradydonut/status/1954883203699019922
DEX selection
Meteora DLMM only
Not available on Orca CLMM or Raydium CLMM because swapless rebalancing is unfeasible on CLMMs - and high frequency swapped rebalancing would significantly erode LP fee generation.
Token & Pool selection
IMPORTANT: Find tokens with HIGH VOLUME in HIGH FEE TIER pools
Avoid low fee tier pools especially majors like SOL-USDC. These usually have low fee-generation and low organic flow. Multiday Cook Up (MCU) LP strategy is more suitable for these pools
Target tokens trading upwards or sideways (not downwards). Rebalances amplify gains upwards/sideways, and losses downwards. Temporary dips are fine when fee-generation can catch up at reversals
⬆️ Upwards
Be net positive from token price growth and concentrated fee-generation
↔️ Sideways
Be net positive from concentrated fee-generation
⬇️ Downwards
Avoid LPing into a token in steep decline. Because rebalances amplify gains upwards/sideways and losses downwards.
However during temporary dips, there are cases when high-frequenc LPing mitigates IL during sideways trading or reversals, due to concentrated fee-generation.
In some cases of very high volume tokens, fee-generation can offset or outperform IL from token price declines.
LP Duration & Take Profit Strategy
(Coming soon)
How to Ping Pong LP?
👉 See thread: https://x.com/bradydonut/status/1954883203699019922
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Ping Pong Case Studies
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Tutorial Videos
More Questions?
Join our Discord for questions & discussions on Ping Pong LP: https://discord.com/invite/hawkfi
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