How LP works

When a pump.fun coin graduates, it trades on a PumpSwap pool: one pot of SOL and one pot of the coin.

Buyers put SOL in and take coins out; sellers do the reverse. The price is simply the ratio of the two pots (x · y = k).

You add both sides at the current ratio — some SOL and an equal value of the coin.

Every trade pays a 0.20% fee that stays in the pool, so your share grows a little with each trade. Busy pools earn more.

When you deposit you get LP tokens. They are your receipt and show your share of the pool.

Removing liquidity burns them and gives you back your share of both pots, fees included. Lose the LP tokens and you lose the position.

Squeeze = last 24 hours of LP fees ÷ pool size × 365. It shows how hard a pool is working for its size.

It only looks back one day, ignores price moves and is not a promise. A 2,000% Squeeze can drop to 50% tomorrow.

Impermanent loss: if the coin's price falls, the pool sells you more of it on the way down. You can end up worth less than if you had just held SOL — often more than the fees earned.

Meme coins can go to zero. If that happens your coin side is worthless and the SOL side has mostly been swapped out.

Thin pools move a lot on small trades, and fees dry up when volume stops.

You sign every deposit and withdrawal with your own wallet. Each one is checked on Solana before you sign.

Payload never holds your liquidity and charges no fee on LP.