Original | Odaily Planet Daily (@OdailyChina)
The Four.meme platform announced on March 31 that it will undergo a significant liquidity pool update (specific timing to be determined), planning to switch the platform's liquidity provision method to PancakeSwap V2. According to the official announcement, all new token LPs will be directly burned after launch. However, this update has also raised questions and concerns within the community, as some Meme coins in the V3 pools experienced a sell-off, with the market value of muppets dropping from $20 million to as low as $4 million.
Odaily Planet Daily will conduct an in-depth analysis of the background, reasons, specific policy changes, and community reactions to this migration.
Why Migrate?
The migration of Four.meme's pools may not be a sudden decision, but rather a comprehensive consideration based on several key factors.
Firstly, PancakeSwap V3 introduced new features such as non-fungible liquidity (NFT Positions) and concentrated liquidity, allowing liquidity providers to supply funds within specific price ranges and lock these liquidity positions in the form of NFTs. The advantage of this mechanism is improved capital efficiency, as funds are concentrated in high trading activity price ranges, but it also brings higher technical complexity. Notably, an attack incident in February 2025 exposed vulnerabilities in the V3 pools. At that time, the attacker manipulated the initial price to extract approximately $183,000, prompting Four.meme to realize that the security and compatibility issues of V3 needed urgent resolution. In contrast, PancakeSwap V2 employs a traditional automated market maker (AMM) model, which is simpler and more stable, and the community has a higher level of trust in it.
Additionally, market feedback indicates that during and after the migration of PancakeSwap V3 pools, there are frequent issues of price volatility and insufficient liquidity. For example, the attack incident on February 11, 2025, exposed vulnerabilities in the initial price verification of V3, leading to fund extraction; and the concentrated liquidity mechanism of V3 may also result in insufficient liquidity due to market fluctuations, especially in the early stages of new pool launches. Users and project parties hope that Four.meme can provide a more reliable solution.
Moreover, the announcement that "all new token LPs will be burned after launch" indicates that Four.meme aims to simplify its tech stack, reducing security risks and operational difficulties caused by complex mechanisms. Burning the unallocated Meme coins in the new token LPs is an attempt to optimize liquidity management and enhance market stability, aiming to reduce circulating supply and support the market performance of new Meme coins.
Finally, Four.meme is also facing pressure from competitors (such as pump.fun). In the Meme market on the BNB Chain, optimizing liquidity pool policies is a key step to maintaining a leading position. Switching to V2 and simplifying operational processes can not only reduce technical risks but also enhance the platform's attractiveness and market competitiveness, while addressing community feedback regarding the complexity and security issues of V3.
Policy Changes in Liquidity Pool Migration
The update of Four.meme's liquidity pool has brought several specific changes, as follows:
Switching from V3 to V2: All newly created Meme coin liquidity pools will directly use the PancakeSwap V2 protocol, moving away from the previously relied V3. V2 adopts a traditional AMM model, with liquidity pools composed of tokens and WBNB, and prices determined by market supply and demand dynamics, making it more intuitive and stable compared to the complex LP locking mechanism of V3 (involving price ranges and NFTs).
New token LP burning: According to the announcement, all newly launched token liquidity pools (LP) will directly burn a portion of the unallocated Meme coins after launch. This change aims to reduce circulating supply, optimize liquidity management, and enhance market stability. For example, if 20% of a Meme coin's liquidity is unallocated, Four.meme will burn these tokens after migrating to PancakeSwap to enhance the scarcity of the remaining tokens.
Handling of old pools: For existing old Meme coins in V3 pools, Four.meme plans to gradually migrate them to V2, but the specific timeline and operational methods have not yet been clarified. Users may need to apply for liquidity transfer, which may involve additional fees or risks.
Security improvements: Four.meme promises to strengthen the security of smart contracts during the migration process, including collaborating with security audit firms to fix previously exposed vulnerabilities (such as the price verification issue and flash loan attack exposed in the February 11, 2025 attack). Additionally, the platform plans to introduce a timelock mechanism to ensure that major code updates undergo community review to enhance transparency and reliability.
While these changes aim to address issues, they may also bring new challenges, such as compatibility issues between V2 and V3 or confusion during the user adaptation period.
Community Attitudes Toward Migration
The liquidity pool migration policy of Four.meme has sparked heated discussions within the community, and Odaily Planet Daily has gathered some community voices.
Supporters believe this is a necessary reform. Some users express that switching to V2 can reduce technical complexity and security risks, while burning the unallocated Meme coins in new token LPs helps stabilize the market and enhance value. Furthermore, Four.meme's attention to market feedback demonstrates its commitment to improvement, which also helps solidify its position in the BNB Chain ecosystem.
However, opposing voices are equally strong, with another group of users expressing concerns. They believe the policy changes are too sudden, especially the unclear migration plan for old Meme coins, which may lead to price declines and loss of liquidity. For instance, the market value of Meme coins like muppets dropped from $20 million to $4 million following the policy announcement, triggering a sell-off. Some users question Four.meme's transparency, worrying whether the new mechanism will expose security vulnerabilities again, and even fearing that burning unallocated Meme coins will affect the interests of early investors.
Additionally, some users hold a neutral stance. They believe the migration itself is necessary but carries high risks. The community needs more information, such as a detailed migration timeline, security audit reports, and compensation plans for old pools. If Four.meme can properly address these issues, this reform may become a turning point for its development; otherwise, it may further undermine user trust.
Overall, discussions on the X platform reflect that community confidence in Four.meme is wavering, and the effectiveness of these changes remains to be seen.
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