# Ping Pong

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Disclaimer: Not Financial Advice (NFA) and Do Your Own Research (DYOR).  This is a “living & breathing” document that will constantly be updated based on new findings & learnings of Ping Pong DLMM experiments. Ping Pong is an advanced liquidity providing strategy for advanced LPers
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## 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
* :point\_right: See thread: <https://x.com/bradydonut/status/1954883203699019922>

## Token & Pool selection

* 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

<table><thead><tr><th width="183.25">Token Price Trend</th><th>Goal of Ping Pong</th></tr></thead><tbody><tr><td>⬆️ Upwards</td><td>Be net positive from token price growth and concentrated fee-generation</td></tr><tr><td>↔️ Sideways</td><td>Be net positive from concentrated fee-generation</td></tr><tr><td>⬇️ Downwards</td><td><p>Avoid LPing into a token in steep decline. Because rebalances amplify gains upwards/sideways and losses downwards. </p><p></p><p>However during temporary dips, there are cases when high-frequency LPing mitigates IL during sideways trading or reversals, due to concentrated fee-generation.</p><p></p><p>In some cases of very high volume tokens, fee-generation can offset or outperform IL from token price declines.</p></td></tr></tbody></table>

## How to Ping Pong LP?

:point\_right: See thread: <https://x.com/bradydonut/status/1954883203699019922>

## Tutorial Videos

* <https://x.com/bradydonut/status/1968642678922375252>
* <https://x.com/bradydonut/status/1954883227082256678>

## More Questions?

* Join our Discord for questions & discussions on Ping Pong LP: <https://discord.com/invite/hawkfi>