Outsmart LP Farming

Manage LP positions on Solana DEXes to earn swap fees. Use when: user asks about LP farming, providing liquidity, earning yield, compounding fees, DLMM, DAMM...

Security Scan

The skill's requirements and runtime instructions align with its stated purpose (running an outsmart CLI to manage Solana LP positions); the requested env vars and binary are proportional, and the install uses an npm package — review the CLI package source and protect your private key before installing.

Purpose & Capability

Name/description (LP farming on Solana) matches what's required: a CLI named 'outsmart' and Solana access (PRIVATE_KEY, MAINNET_ENDPOINT). There are no unrelated binaries or credentials requested.

Instruction Scope

SKILL.md only instructs running the outsmart CLI to query, create pools, add/remove liquidity, claim fees and rebalance. It does not ask the agent to read arbitrary files, other env vars, or exfiltrate data. Commands shown require signing and RPC access — consistent with the task.

Install Mechanism

Install uses npm (package 'outsmart') to provide the 'outsmart' binary. npm installs are common but carry supply-chain risk; no arbitrary download URLs or extract steps are present, which reduces risk compared to direct downloads.

Credentials

PRIVATE_KEY and MAINNET_ENDPOINT are appropriate and expected for a CLI that signs Solana transactions and talks to a node. These are sensitive — the skill does not request additional unrelated secrets.

Persistence & Privilege

always:false and no special OS/config paths requested. The skill does not ask to modify other skills or system-wide settings.

Assessment

This skill appears to do what it says, but you should take precautions before installing: 1) Verify the npm package and the linked GitHub repo (maintainer, recent commits, stars, issues) to ensure the CLI is legitimate. 2) Never put your primary long-term private key in an environment variable on shared hosts; prefer a wallet that can sign transactions (hardware wallet or dedicated signing service) or use an ephemeral key with limited funds. 3) Use a trusted RPC endpoint for MAINNET_ENDPOINT (or run your own) to avoid man-in-the-middle or front-running risks. 4) Audit the outsmart CLI code (or run it in a sandbox) before giving it signing credentials; npm packages can carry supply-chain risk. 5) Test commands on devnet/testnet first with small amounts. 6) If you need autonomous agent invocation, be aware the agent could run the CLI without interactive approval — keep credentials restricted. If any of these checks fail, treat the package as untrusted and do not provide your PRIVATE_KEY.

LP Farming

You earn money by providing liquidity to pools. Every time someone swaps through your pool, you get a cut. Two protocols, two completely different games.

When to Use

• "Farm yield on Solana"
• "Add liquidity to a pool"
• "Create a new pool"
• "Rebalance my LP"
• "Claim my fees"
• "DLMM vs DAMM v2?"

When NOT to Use

• Staking SOL for validator rewards — different system
• Lending/borrowing (Marginfi, Kamino) — different protocols
• CEX market making — this is on-chain only

DLMM vs DAMM v2

DLMM is for mature tokens. Concentrated bins, you pick the price range, you actively manage. Token needs 30+ min of real volume. Costs ~0.2 SOL. If price moves out of range, you're 100% in the losing side.

DAMM v2 is for fresh launches. Full range, set-and-forget, decaying fee schedule. The alpha: be the first person to create the pool — you set 99% starting fee and capture everything. Costs ~0.02 SOL.

	DLMM	DAMM v2
When	Token age >30 min	Token age <5 min
LP style	Concentrated bins	Full range
Fees	Fixed fee tier	Decaying (99% start -> 2% end)
Alpha	Tight bins = max capture	First pool creator = everything
IL	Binary: in range or fully single-sided	Standard AMM: gradual
Cost	~0.2 SOL	~0.02 SOL

DLMM Commands

Add liquidity (3 strategies)

# Spot: even distribution (good default)
outsmart add-liq --dex meteora-dlmm --pool POOL --sol 0.5 --strategy spot --bins 50

# Curve: concentrated near active bin (stable pairs)
outsmart add-liq --dex meteora-dlmm --pool POOL --sol 0.5 --strategy curve --bins 30

# Bid-Ask: more at edges (volatile pairs)
outsmart add-liq --dex meteora-dlmm --pool POOL --sol 0.5 --strategy bid-ask --bins 40

One-sided positions

# SOL below price = buy wall (DCA in while earning fees)
outsmart add-liq --dex meteora-dlmm --pool POOL --sol 0.5 --token-amount 0 --strategy spot --bins 40

# Token above price = sell wall (DCA out while earning fees)
outsmart add-liq --dex meteora-dlmm --pool POOL --sol 0 --token-amount 1000 --strategy spot --bins 40

Rebalancing

outsmart claim-fees --dex meteora-dlmm --pool POOL
outsmart remove-liq --dex meteora-dlmm --pool POOL --pct 100
outsmart quote --dex meteora-dlmm --pool POOL
outsmart add-liq --dex meteora-dlmm --pool POOL --sol 0.5 --strategy spot --bins 50

Don't rebalance for small moves — each cycle costs ~0.005-0.02 SOL.

DAMM v2 Commands

First pool creator play

# Check if pool exists
outsmart find-pool --dex meteora-damm-v2 --token TOKEN_MINT

# If not found, create with 99% starting fee
outsmart create-pool --dex meteora-damm-v2 --token TOKEN_MINT \
  --base-amount 1000000 --quote-amount 0.5 \
  --max-fee 9900 --min-fee 200 --duration 86400 --periods 100

Day-to-Day Workflow

# 1. Find opportunity (volume/liquidity > 1.0 = good fees)
outsmart info --token TOKEN_MINT

# 2. Check pool
outsmart quote --dex meteora-dlmm --pool POOL

# 3. Add LP
outsmart add-liq --dex meteora-dlmm --pool POOL --sol 0.5 --strategy spot --bins 50

# 4. Monitor
outsmart list-pos --dex meteora-dlmm --pool POOL

# 5. Claim fees
outsmart claim-fees --dex meteora-dlmm --pool POOL

# 6. Exit
outsmart remove-liq --dex meteora-dlmm --pool POOL --pct 100

Risk Management

• DLMM IL is binary: in range or fully single-sided. Use wider bins (50+).
• DAMM v2 IL is standard AMM. Offset by high initial fees if you're first LP.
• Only LP tokens with >$100k liquidity, >24h age, organic buyers.
• Budget ~0.05 SOL for a full LP cycle. Keep 0.1 SOL gas reserve.