A long-time LP Army veteran is dropping one of his most reliable fee-printing setups. Fee Strat Friday is here and today we’re breaking down @MichaelZogot's Layer Cake DLMM strategy. Let’s walk through it step by step

Michael's Layer Cake Strategy This is his go-to LP setup for one-sided $SOL positions on Meteora. It captures fees, limits downside, and performs in all market conditions up, down, or sideways. Why “Layer Cake”? Because, just like baking, you build it step by step: one liquidity layer at a time. This thread breaks down the full strategy: How to enter When to layer How to size When to exit How to stay profitable while avoiding major IL

Step 1: Pick the Right Token Start with a chart that’s in an uptrend. You're not hunting bottoms, you're building structure. What to look for: – Clear support zones under current price – Strong volume & momentum – Bonus: RSI showing overbought (potential local top) You want a token that might dip, not die. That dip is your fee farming zone.

Step 2: Open Your First LP Layer Open your first one-sided $SOL position using Bid-Ask. Works on any bin step (20 / 80 / 100 etc). – Center your range around a clean support level – Use enough bins to spread liquidity wide – Beginners: double the base 69 bins to~138 – All liquidity stays in $SOL (no exposure to the paired token) This layer aims to catch the bounce at support. If support breaks, no stress - you’re just layering.

Step 3: Add Layer 2 When Price Dips Don’t sit and pray. Layer it. When price dips 50–60% into your first position, set up Layer 2: – Place it below Layer 1 – Double the size (if Layer 1 = 1 SOL --> Layer 2 = 2 SOL) – Double the bin count (69 to 138, etc) Why this works: If Layer 1 suffers IL or underperforms, Layer 2 picks up the slack with more capital, deeper fees, and better positioning. You’re turning risk into structure.

Step 4: Exit Upper Layer on Bounce When price bounces from support or once your lower layer is placed Layer 1 becomes profitable or IL-neutral. That’s your moment to: – Close Layer 1 – Lock in fees – Let Layer 2 become your main position – Prep for the next drop Small caps: take the first bounce. Mid/high caps: wait for better structure. You’re not timing bottoms you’re catching bounces that print fees.

Step 5: Build New Layers Below Once the next dip starts forming, Layer 3 comes into play. Same rules: – Double size again (2 to 4 SOL, etc) – Stretch the bins wider – Place near the next key support Each new layer: – Improves your entry – Collects more fees – Reduces IL from layers above – Builds a staircase of fee generation

Tips, Sizing, Risk Control Stick to $SOL-only LPs (lower risk) Use wider bins if you’re new (100%+ of base) Double size gradually but stay in comfort zone Don’t rush deeper layers Always respect chart logic and structure The Layer Cake strategy isn’t about guessing the bottom. It’s about staying in the game, protecting capital, and collecting fees every step of the way.