LP your airdrops: my +65% SWTCH play on Meteora.
Most people dump airdrops at TGE. I put SWTCH into a Meteora DLMM pool instead, farmed one sideways day, and closed 65% up.
I received an airdrop of $SWTCH. While most people immediately sold it, I decided to put it to work on @MeteoraAG instead of dumping it. Here's how it played out.
The setup
After the claim, I searched for the pool on Meteora. There were a 400 bin step pool and a 25 bin step option. I went with the 25 bin step because I was convinced that the price action would be low due to the high MKR, and we would see a sideways movement.
- Token only $SWTCH.
- Strategy: SPOT (not bid/ask). Let price ping-pong and farm fees.
- Bin step: 25 (efficient fills without overpaying rent).
- Base fee: 0.25%.
Setting the range
I tried to catch the lowest point after the token TGE. This was important because with my token-only setup, I generate fees only when the token price goes up. To prepare for the sideways movement, I needed to set the range correctly. This is why I rebalanced the pool twice until I was satisfied with it. I successfully found the lowest point, with the highest point occurring around the first peak on the chart.
The exit
Have a clear exit: I target roughly 24h cycles; if fees + price hit my mark, I'm out. Based on my experience with previous TGEs, I know that prices rarely stay within a specific range for longer than 24 hours. So when I noticed weakness in the market, I closed the position. Discipline > dopamine. Harvest, close, move on.
The result
I increased the value of my airdrop by 65%. If I had sold it at TGE, or waited until today, I would have gained much less.
- Instead of selling, I deployed it into a Meteora pool.
- I took advantage of a sideways market for one day.
- I closed the position with +65% profit.
Not a bad outcome for an airdrop that many overlooked.