Four.meme liquidity pool adjustment: Transition to PancakeSwap V2, burn new Token LP.

The community seems not to be on board with the new migration policy, and the market capitalization of some old version Meme coins has experienced a big dump.

Written by: Dingdang, Odaily Planet Daily

Four.meme platform announced on March 31 that it will undergo a significant liquidity pool update (specific time 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 going live. However, this update has also raised concerns and worries within the community, as some Meme coins in the V3 pools have experienced a sell-off, for example, the market capitalization of muppets plummeted from 20 million dollars to 4 million dollars.

Odaily Planet Daily will conduct an in-depth analysis of the background, reasons, specific policy changes, and community reactions to this migration.

Why should we migrate?

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

First, PancakeSwap V3 introduces new features such as non-fungible liquidity (NFT Positions) and concentrated liquidity, allowing liquidity providers to allocate funds within a specific price range and lock this liquidity in the form of NFTs. The advantage of this mechanism is that it improves capital efficiency, as funds are concentrated in price ranges with high trading activity, but it also brings higher technical complexity. In particular, the attack incident that occurred in February 2025 exposed vulnerabilities in the V3 pools. At that time, the attacker manipulated the initial price to extract about $183,000 in funds, which made Four.meme realize that the security and compatibility issues of V3 needed urgent resolution. In contrast, PancakeSwap V2 adopts a traditional automated market maker (AMM) model, which is simpler and more stable, and the community has a higher level of trust in it.

In addition, market feedback shows that PancakeSwap V3 often experiences price fluctuations and insufficient liquidity during and after the migration of its pools. For example, the attack incident on February 11, 2025, exposed vulnerabilities in the initial price verification of V3, leading to the withdrawal of funds; moreover, V3’s concentrated liquidity mechanism 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.

In addition, the announcement that “all LPs of new tokens will be destroyed after launching” indicates that Four.meme aims to simplify the tech stack and reduce security risks and operational difficulties caused by complex mechanisms. Destroying the unallocated Meme coins in the new token LP is an attempt to optimize liquidity management and enhance market stability, aiming to reduce circulating supply and support the market performance of the new Meme coin.

Finally, Four.meme is also facing pressure from competitors like pump.fun. In the Meme market of the BNB Chain, optimizing liquidity pool policies is a key step to maintain a leading position. Switching to V2 and simplifying the operational process can not only reduce technical risks but also enhance the platform’s attractiveness and market competitiveness, while responding to the community’s feedback on the complexity and security issues of V3.

Policy Changes for Liquidity Pool Migration

The liquidity pool update of Four.meme 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, bidding farewell to the previously relied V3. V2 adopts the traditional AMM model, with liquidity pools consisting of tokens and WBNB, and prices are dynamically determined by market supply and demand, making it more intuitive and stable compared to the complex LP locking mechanism of V3 (which involves price ranges and NFTs).
• New Token LP Destruction: According to the announcement, all newly launched token liquidity pools (LP) will directly destroy a portion of the unallocated Meme coins after going live. 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 destroy these tokens after migrating to PancakeSwap to enhance the scarcity of the remaining tokens.
• Handling of old pools: For the old Meme coins that already exist in the V3 pool, Four.meme plans to gradually migrate to V2, but the specific timetable and operational methods have not yet been clarified. Users may need to apply to transfer liquidity, which may involve additional fees or risks.
• Security Improvements: Four.meme is committed to enhancing the security of smart contracts during the migration process, including collaboration with security auditing firms to fix previously exposed vulnerabilities (such as the price verification issue and flash loan attack exposed in the attack on February 11, 2025). In addition, the platform plans to introduce a Timelock mechanism to ensure that significant code updates are reviewed by the community to improve transparency and reliability.

These changes, while aimed at solving problems, may also bring new challenges, such as compatibility issues between V2 and V3 or confusion during the user adaptation period.

Community Attitude Towards Migration

Four.meme’s pool migration policy has sparked a heated discussion in the community, with Odaily gathering some of the community’s voices.

Supporters believe that this is a necessary reform. Some users indicate that switching to V2 can reduce technical complexity and decrease security risks, while destroying a portion of the unallocated Meme coins of the new token LP helps stabilize the market and enhance value. Moreover, Four.meme’s emphasis on market feedback demonstrates its sincerity in improvement and also helps solidify its position in the BNB Chain ecosystem.

However, the opposing voices are equally strong, with another group of users expressing concerns. They believe that the policy changes are too sudden, especially the unclear migration plan for old Meme coins, which may lead to a price fall and loss of liquidity. For example, Meme coins like muppets saw their market capitalization plummet from $20 million to $4 million after the policy announcement, triggering a wave of sell-offs. Some users question the transparency of Four.meme, worrying whether the new mechanism might expose security vulnerabilities again, and are even concerned that destroying unallocated Meme coins could affect the interests of early investors.

In addition, some users hold a neutral attitude. They believe that the migration itself is necessary, but the risks are high. The community needs more information, such as a detailed migration timeline, security audit reports, and a compensation plan for the old pools. If Four.meme can properly address these issues, this reform could become a turning point for its development; otherwise, it may further undermine user trust.

Overall, the discussions on platform X reflect that the community’s confidence in Four.meme is wavering, and the effectiveness remains to be seen.