Four.meme liquidity pool adjustment: switch to PancakeSwap V2 and burn new token LP

Original | Odaily Planet Daily (@OdailyChina)

Author | Dingdong (@XiaMiPP)

Four.meme platform announced on March 31 that it will be undergoing a major liquidity pool update (exact time to be determined), It is planned to switch the liquidity provision method of the platform to PancakeSwap V2. According to the official announcement, all LPs of new tokens will be burned directly after listing. However, this update has also raised questions and concerns in the community, and there has been a sell-off of meme coins in some V3 pools, such as muppets (puppets) with a market cap of 2000 At one point, $10,000 plummeted to $4 million.

Odaily will provide an in-depth analysis of the context of the migration, its causes, specific policy changes, and the community's response.

Why migrate?

Four.meme's pool migration may not have been a sudden move, but rather a combination of several key factors.

First, PancakeSwap V3 introduces new features such as NFT Positions and Centralized Liquidity, allowing liquidity providers to provide funds within a specific price range and lock up this liquidity in the form of NFTs. The advantage of this mechanism is that it improves capital efficiency, as funds are concentrated only in the highly traded price range, but it also introduces higher technical complexity. In particular, the February 2025 attack exposed the vulnerability of the V3 pool. At the time, the attackers were able to extract about $183,000 by manipulating the initial price, which made Four.meme realise that V3's security and compatibility issues needed to be addressed. In contrast, PancakeSwap V2 uses the traditional Automated Market Maker (AMM) model, which is simpler and more stable to operate, and the community has a higher level of trust in it.

In addition, market feedback shows that PancakeSwap V3 often suffers from price fluctuations and insufficient liquidity during and after the migration of the pool. For example, the February 11, 2025 attack exposed a vulnerability in V3's initial price validation, resulting in the withdrawal of funds; V3's centralised liquidity mechanism may also lead to insufficient liquidity due to market volatility, especially in the early stages of a new pool's launch. Users and project owners expect Four.meme to provide a more reliable solution.

In addition, the announcement mentioned that "all LPs of new tokens will be burned after listing", indicating that Four.meme aims to simplify the technology stack and reduce the security risks and operational difficulties caused by complex mechanisms. The destruction of the unallocated portion of the new token LP is an attempt to optimise liquidity management and enhance market stability, aiming to reduce the circulating supply and support the market performance of the new meme coin.

Finally, Four.meme also faces pressure from competitors like pump.fun. In BNB Chain's meme market, optimising the liquidity pool policy is a key step to stay ahead of the curve. Switching to V2 and streamlining the operational process not only reduces technical risks, but also enhances the attractiveness and market competitiveness of the platform, while responding to community feedback on V3 complexities and security issues.

Policy Changes for Liquidity Pool

MigrationFour.meme's liquidity pool update brings several specific changes, which are as follows:

• Switching from V3 to V2:All newly created Meme Coin liquidity pools will directly use the PancakeSwap V2 protocol, saying goodbye to the previously relied on V3. V2 adopts the traditional AMM model, the liquidity pool is composed of tokens and WBNB, and the price is determined by the market supply and demand dynamics, which is more intuitive and stable than V3's complex LP lock-up mechanism (involving price range and NFTs).

• New Token LP Burn:According to the announcement, all newly launched token liquidity pools (LPs) will directly burn some of the unallocated meme coins after the launch. This change aims to reduce the supply of circulation, optimise liquidity management and market stability. For example, if 20% of the liquidity of a meme coin is not allocated, Four.meme will burn those tokens after migrating to PancakeSwap to enhance the scarcity of the remaining tokens.

• Handling of old pools: For old meme coins that already exist in V3 pools, Four.meme plans to gradually migrate to V2, but the specific timeline and operation method have not yet been clarified. Users may be required to apply for the transfer of liquidity, which may involve additional fees or risks.

• Security Improvements: Four.meme is committed to strengthening the security of smart contracts during the migration process, including working with security audit firms to fix previously exposed vulnerabilities (Such as the price validation issue exposed in the February 11, 2025 attack and the flash loan attack). In addition, the platform plans to introduce a timelock mechanism to ensure that major code updates are vetted by the community to improve transparency and reliability.

While these changes are intended to solve problems, they can also introduce new challenges, such as compatibility issues between V2 and V3 or confusion in user adaptation periods.

Community Attitudes to

MigrationFour.meme's pool migration policy has sparked a lively discussion in the community, with Odaily gathering some community voices.

Proponents argue that this is a necessary reform. Some users said that switching to V2 reduces technical complexity and security risks, while the burning of a portion of the new token LP's unallocated meme coins helps stabilise the market and increase value. Moreover, Four.meme's emphasis on market feedback shows its sincerity in improving and helping to solidify its position in the BNB Chain ecosystem.

However, the opposition was just as strong, with another segment of users expressing concern. They believe that the policy change is too abrupt, especially the unclear migration plan of the old meme coin, which could lead to a price drop and a loss of liquidity. For example, meme coins like muppets (puppets) sparked a sell-off when their market cap plummeted from $20 million to $4 million after the policy was announced. Some users have questioned Four.meme's transparency, worried about whether the new mechanism will expose security vulnerabilities again, and even worried that burning unallocated meme coins will affect the interests of early investors.

In addition, there are some users who are neutral. They believe that the migration itself is necessary, but the risks are higher. The community needs more information, such as a detailed migration schedule, security audit reports, and a compensation plan for the old pool. If Four.meme can handle these issues properly, this reform could be a turning point in its development; Otherwise, it could further erode user trust.

Overall, the discussions on Platform X reflect that the community's confidence in Four.meme is wavering, and it remains to be seen how effective it will be.