That's honestly a textbook case of flawed LP structure. When the sole liquidity provider is the team and it's single-sided, you're looking at a fundamental design issue. Here's the catch with single-sided pools like Meteora: liquidity gets generated through user purchases. Buyers receive tokens while their stablecoins flow into the LP—that's how the mechanism sustains itself. But if the team suddenly withdraws those stables? The whole thing collapses. It's essentially a house of cards where the structure depends entirely on continuous inflows from new participants. This kind of setup raises serious red flags about project sustainability and participant protection.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
That's honestly a textbook case of flawed LP structure. When the sole liquidity provider is the team and it's single-sided, you're looking at a fundamental design issue. Here's the catch with single-sided pools like Meteora: liquidity gets generated through user purchases. Buyers receive tokens while their stablecoins flow into the LP—that's how the mechanism sustains itself. But if the team suddenly withdraws those stables? The whole thing collapses. It's essentially a house of cards where the structure depends entirely on continuous inflows from new participants. This kind of setup raises serious red flags about project sustainability and participant protection.