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DEFI AT BEAR CHAIN
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Almost no one is using concentrated liquidity correctly for memecoins (some of these pools are generating 100k% APY). Some long-form alpha on how to structure/think about pools, starting with a few premises:1) You think a coin is good, and want to particpate in upside
2) You want to DCA responsibly out of a coin as it goes up, not just hold spot
3) You want to minimize opportunity cost of capital
4) You want to profit on volatility as you do soThe majority of memecoin liquidity, especially in the early days of a new launch lives in v2 style pools. These are less capital efficient, but allow for better price discovery. So, by supplying v3 liquidity, the better execution can lead to your pools seeing more flow. Let's take a real example with the $COST - $SOL pair. Current price is 5288 COST/SOL. Let's say you think COST goes to $1, at a SOL price of $200 - that means the top end of your range should be at 200 COST/SOL. Let's say you also want to have a buffer on the low end, in case price volatility goes to the downside - you can set the low end of your range at ~8/10k COST/SOL, which is 40-50% downside. Put simply, these parameters will gradually DCA you out of COST into SOL as price goes up, and ensure that you stay in range as long as price doesn't drop meaningfully. Oh, Jack, but what about Impermanent Loss? Yes, of course v3 pools have impermanent loss, but remember that IL comes relative to the baseline of holding. If you were already planning on taking profit as the number goes up, then effective impermanent loss is actually quite minimal. This is probably best practice, as these are memecoins, and what matters is consistency in execution, not going 0->100 immediately. Ok, then what about my opportunity cost of capital? Well, because we start the low end of the range close to spot price, you actually have very low opportunity cost of capital relative to holding, as you have to supply barely any of the base asset to the pool. Additionally, you were already planning on holding the coin in spot, so there's little/no difference relative to an LP (smart contract risk). As an example, my original $COST - $SOL LP had 2.75m COST in it, with only 8 SOL supplied against it. Well, fine, but are the fees even meaningful? Yeah, you could say that. Right now, my COST-SOL LP position is earning between 25,000 - 100,000% APR in fees generated, as the amount of volatility and volume is extremely high relative to TVL in LP. Additionally, remember that most seed/burnt LP and early depositors supply in Univ2. This means that dollar for dollar, your liquidity will be deeper with the same amount of TVL in the pool. If you want to get really creative, you can harvest LP fees, hold memecoin token rewards to maintain spot upside, and then deposit SOL rewards into a protocol like @kaminofinance that earns you an incremental 0.25% / day in rewards via their points camapaign.

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Study Governance Forums

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The Modular Path for dApp growth on Polygon:1) Launch on a public chain, like PoS, zkEVM, OKX etc to find PMF within a niche2) Expand in-ecosystem using the AggLayer, minimizing Dev lift3) Scale to your own AppChain, generating sequencer revenue and customizability

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yup

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