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discussion 2024-10-25

Summary​

In the discussion, Shaw expressed skepticism about building capital in the current crypto landscape but acknowledged that cryptocurrency enthusiasts understand its potential value. Simon suggested a strategy for founders to monetize their tokens without selling them by participating in liquidity pools like Metora DLMM or Raydium, where they could claim fees from trade volumes as an alternative income stream. Shaw showed interest in learning how to set up such a pool and was informed that it's possible either by creating one if none exists or joining an existing pool. The conversation highlighted the importance of liquidity pools for founders seeking passive income without diluting their token holdings, marking a significant technical discussion on yield farming strategies within the crypto community.

FAQ​

  • How can founders get money off their tokens without selling them?

  • Simon: Founders can set up a Metora DLMM (Decentralized Liquidity Mining Market) or join an existing one, claiming fees from the liquidity pool they contribute to. This way, they don't have to sell their tokens but still earn money through trading activity on the platform.

  • How does a Metora DLMM work?

    • Simon: A Metora DLMM allows founders to create or join a liquidity pool and claim fees based on trade volume of their deposits, typically around 2% but can go up to 5% for more volatile assets. Founders have the flexibility to burn these fees if they were earned from selling tokens, using the SOL (Solana's native cryptocurrency) as earnings instead.

  • How do you set up a Metora DLMM?

    • Simon: To set up a Metora DLMM, founders can either create their own pool or join an existing one if it meets their requirements. The process involves setting the fee percentage and managing the liquidity provided to the pool for trading activities.

Who Helped Who​

  • Simon helped Shaw with understanding how to monetize his crypto assets without selling them by suggesting setting up a Metora DLMM and claiming fees from trade volume.

  • BabyShark provided validation for Shaw's idea of using attention and recognition as currency, indirectly helping him feel more confident about the concept.

Action Items​

  • Technical Tasks
  • Set up a Metora DLMM and claim sol side, cash out (mentioned by Simon)
  • Documentation Needs
    • No explicit documentation requests were made in the conversation.
  • Feature Requests
    • Create or join a liquidity pool for earning yield on tokens without selling them (discussed by Shaw and Simon)
  • Community Tasks
    • Share information about setting up Metora DLMM pools, possibly through links provided (initiated by Simon)