Four.meme Liquidity pool adjustment: Turn to PancakeSwap V2, destroying new tokens LP

Author: Dingdang, Odaily Planet Daily

The Four.meme platform announced on March 31 that it will undergo a major liquidity pool update (the specific time is to be determined), and plans to switch the platform's liquidity provision method to PancakeSwap V2. According to the official announcement, all new tokens' LPs will be directly destroyed after they are launched. But this update also caused doubts and concerns among the community. Some V3 pools saw a sell-off wave, such as the market value of muppets plummeted from $20 million to $4 million.

Odaily Planet Daily will conduct in-depth analysis of the context, reasons, specific policy changes and community responses of the migration.

Why do we need to migrate?

The pool migration of Four.meme may not be a sudden move, but is based on a comprehensive consideration of the following key factors.

First, PancakeSwap V3 introduces new features such as non-homogeneous liquidity (NFT Positions) and centralized liquidity, allowing liquidity providers to fund a specific price range and lock these liquidity in the form of NFTs. The advantage of this mechanism is that it improves capital efficiency, as funds are concentrated only in the price range of high transaction active, but also brings higher technical complexity. In particular, the attack incident in February 2025 exposed the vulnerability of the V3 pool. At that time, the attackers drew about $183,000 by manipulating the initial price, which made Four.meme realize that the security and compatibility issues of V3 need to be solved. In contrast, PancakeSwap V2 adopts the traditional automatic market maker (AMM) model, which is simpler and more stable in operation and has a higher trust in it.

In addition, market feedback shows that the PancakeSwap V3 often has problems of price fluctuations and insufficient liquidity during and after the pool migration. For example, the attack on February 11, 2025 exposed the vulnerability in V3's initial price verification, resulting in the withdrawal of funds; and V3's centralized liquidity mechanism may also lead to insufficient liquidity due to market fluctuations, especially in the early stages of the new pool launch. Users and project parties hope that Four.meme can provide a more reliable solution.

In addition, the announcement mentioned that "all new tokens will be destroyed after they are launched" shows that Four.meme aims to simplify the technology stack and reduce security risks and operational difficulties caused by complex mechanisms. Destruction of the unallocated Meme coins in the new token LP is an attempt to optimize liquidity management and enhance market stability, aiming to reduce circulation supply and support the market performance of the new Meme coins.

Finally, Four.meme also faces pressure from competitors such as pump.fun. In BNB Chain’s Meme market, optimizing liquidity pool policies is a key step in maintaining a leading position. Switching to V2 and simplifying the operation process not only reduces technical risks, but also enhances the platform's attractiveness and market competitiveness, while responding to community feedback on V3 complexity and security issues.

Policy changes in liquidity pool migration

Four.meme's liquidity pool update has brought several specific changes, as follows:

• Switch from V3 to V2: All newly created Meme coins liquidity pools will directly use the PancakeSwap V2 protocol, saying goodbye to V3 that was previously dependent. V2 adopts the traditional AMM model, and the liquidity pool is composed of tokens and WBNB. The price is determined by the market supply and demand dynamics. Compared with V3's complex LP locking mechanism (involving price range and NFT) is more intuitive and stable.
• New token LP Destruction: According to the announcement, all newly launched token liquidity pools (LPs) will directly destroy some unallocated Meme coins after they go online. This change aims to reduce circulation supply and optimize liquidity management and market stability. For example, if 20% of the liquidity of a Meme coin is not allocated, Four.meme will destroy these 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 timetable and operation methods have not yet been clarified. Users may need to apply for transfer of liquidity, which may involve additional handling fees or risks.
• Security Improvements: Four.meme promises to strengthen the security of smart contracts during the migration process, including working with security audit companies to fix previously exposed vulnerabilities (such as price verification issues and lightning loan attacks exposed in the February 11, 2025 attack). In addition, the platform plans to introduce a timelock mechanism to ensure that major code updates are reviewed by the community to improve transparency and reliability.

While aimed at solving problems, these changes can also bring new challenges, such as compatibility issues between V2 and V3 or confusion during user adaptation.

Community attitude towards migration

Four.meme’s pool migration policy has sparked heated discussions in the community, with Odaily Planet Daily gathering some community voices.

Supporters believe this is a necessary reform. Some users say switching to V2 can reduce technical complexity and reduce security risks, while destroying the unallocated Meme coins of the new token LP helps stabilize the market and enhance value. Moreover, Four.meme's emphasis on market feedback shows its sincerity in improving and also helps consolidate its position in the BNB Chain ecosystem.

However, the opposition was equally strong, with another group of users expressing concerns. They believe that policy changes are too sudden, especially the unclear migration plan of old Meme coins, which may lead to price declines and loss of liquidity. For example, Meme coins like muppets (Puppets) have dropped sharply from $20 million to $4 million after the policy announcement, triggering a sell-off wave. Some users questioned the transparency of Four.meme, worried that the new mechanism would expose security vulnerabilities again, and even worried that the destruction of unallocated Meme coins would affect the interests of early investors.

In addition, some users have a neutral attitude. They believe that the migration itself is necessary, but at a higher risk. The community needs more information, such as detailed migration schedules, security audit reports, and compensation plans for Lao Chizi. If Four.meme can handle these issues properly, this reform may become a turning point in its development; otherwise, it may further shake user trust.

Overall, the discussions on the X platform reflect that the community’s confidence in Four.meme is swaying, and how effective it is still to be seen.