Liquidity Sniping: How to Snipe Liquidity Pools on Solana
One of the best ways to pull profit from liquidity pool launches on Solana is by running a sniping bot.
This lets us hand off the job of spotting which new Liquidity Pools have launched on the network and deciding whether to buy. Generally, a bot with well-tuned parameters can deliver solid profits over the long run.
A lot of the time, the profit isn’t big enough because you have to build the bot and get it running. But in this post I’ll show you how to do it without coding and without spending much SOL.
In this article I’ll walk you through how to do liquidity sniping on Solana to generate some extra income.
If you’re interested in snipe LP (Liquidity Pools) sniping but don’t know much about it yet, let me start from the basics and finish with a dead-simple step-by-step.
What is liquidity sniping and how it works
Inside blockchains, the creation of liquidity pools happens inside a specific block. Liquidity sniping means using a Sniper bot programmed to detect those blocks the instant they’re created, so it can buy and sell based on certain parameters.
Once a liquidity pool meets the configured parameters, the bot buys a set amount of tokens and waits for the right moment to sell. This way, by sniping a large number of Liquidity Pools, you tend to rack up big profits.
The real magic behind how it works and how it generates profit comes down to picking the right parameters for when the bot buys or sells. I’ll walk you through them next.
How to snipe Liquidity Pools on Solana step by step
To get started, head over to the new Zeno Solana sniper bot and connect a wallet using its private key. You can create a separate wallet just for this; we don’t store any kind of key.
Now the next step is to set up the following features in the Zeno sniper bot:
- Connection
- Buying Tokens
- Selling Tokens
- Token Filters
Connection
Connection is the parameter that determines sniping speed, since it’s where you pick the RPC.
An RPC (Remote Procedure Call) is basically the link between any dApp and the Solana blockchain. A better RPC allows more queries per second, which translates into more transactions and therefore more speed when sniping Liquidity Pools.
By default, the public Solana RPC stays selected, but you can use our own premium RPC for 0.25 SOL.
Buying Tokens
This section is for setting up the token buy. Buying Amount refers to the total amount used to buy each new token; it’s not the amount per transaction but the total amount.
The Slippage refers to the percentage difference between the first price the Zeno sniper bot detects when it spots the liquidity pool and the price actually paid. If the percentage gap is bigger than that, the bot will skip the buy.
Selling tokens
Here you set the parameters the bot uses to sell whatever token it’s holding. You can turn this off and start selling manually if you prefer.
If instead you want to automate it, you’ll need to configure it in a way that actually generates profit.
The first parameter is ‘Price Check Interval‘. Here you tell the Zeno bot how often to check the price. A high value can cause inaccuracies and missed opportunities, while a very low value can cause issues with the slippage when the token price is highly volatile.
‘Take profit‘ refers to the profit percentage at which the sell should trigger. A very high value leaves us exposed to rug pulls, while a low one obviously means weak returns.
‘Stop Loss‘ is there to cover us when the bot detects the price is falling. A high value doesn’t make much sense, and a low value can cause us to sell on minor corrections.
‘Enforced Selling‘ is a parameter that triggers a sale after a certain time. It exists because liquidity pool creators often wait a while before pulling liquidity, so the longer we’re operating in a liquidity pool, the more exposed we are.
Token Filters
This part comes down to how reliable we expect the liquidity pool we’re going to liquidity snipe to be.
If we apply every filter, the universe of liquidity pools available for liquidity sniping gets more reliable but also much smaller, so we’ll need to run the tool longer to find the same number of LPs.
The filters check whether the liquidity pool creator applied revoke freeze, revoke mint, and revoke update.
In the same way, if we bump up the ‘Min Pool Size‘ to require more liquidity, fewer LPs will meet that threshold. The ‘Max Pool Size’ helps us target liquidity pools that aren’t too big, which means the realized gain percentage will be higher thanks to the volatility.
With the button in the top right we can skip the filters, which lets us snipe many more liquidity pools. Just keep in mind it’ll be a bit riskier.
Start Snipe
Alright, time to start liquidity sniping and generate some profit. You should see something like this once you kick it off.
How much will I earn snipe Liquidity Pools
The truth is, LP sniping depends on a ton of factors, many of which we don’t even control. There’s no upper limit on profit; you could be looking at thousands of dollars, but you can also take losses.
The main parameters that affect profit are:
- The RPC you use
- The snipers going after the same tokens and how fast they are (which mostly depends on the RPC used)
- How many of the tokens turn out to be rug pulls
- The number of tokens launched that match the conditions you set in the filters
The combinations of parameters are infinite and there’s no single recipe to make money; you have to practice until you can pull off profitable sniping.
Conclusion
While investing in liquidity pools can be profitable up to a point, getting your sniping dialed in takes practice and learning to tune the parameters so you can generate profit over the long run. Good luck with your snipe on Solana!
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