What is DAMM v2?

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DAMM v2 is Meteora’s configurable constant-product AMM for Solana markets. It is built for pools that need explicit launch settings, fee behavior, liquidity ownership, reward distribution, and token support in one on-chain program. At its core, a DAMM v2 pool holds two token vaults, tracks a current square-root price, and lets traders swap against shared liquidity. The pool can use either a fixed concentrated price range or a full-range compounding model. LP ownership is represented by Token 2022 position NFTs, and the position account tracks liquidity, pending fees, rewards, vesting locks, and permanent locks.

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Why DAMM v2 Exists

Token markets need different liquidity behavior at different stages. A new launch may need scheduled fees, quote-token fee collection, activation timing, or an alpha-vault window. A mature pair may need full-range liquidity with compounding. A launchpad may need reusable pool configurations. A project treasury may need locked liquidity that still earns fees and rewards. DAMM v2 is designed to support those different needs without forcing every pool into the same template.

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How DAMM v2 Works

A DAMM v2 pool is created around two different token mints: token A and token B. Token B is commonly the quote asset, such as SOL or USDC, because OnlyB and Compounding fee modes collect fees in token B. The pool has an initial square-root price, initial liquidity, fee parameters, an activation type, and an activation point. Pool creators can use static or dynamic configurations:

• Static configurations reuse operator-created settings. They can be public or restricted to a specific pool creator authority.
• Dynamic configurations let an authorized pool creator provide pool-specific parameters while still using a registered config account.
• Customizable pools are initialized directly with pool parameters and use a separate pool address seed.

For LPs, the experience is position-based. When you add liquidity, you hold a position NFT. That position tracks your liquidity, your pending fees, your pending liquidity mining rewards, and any liquidity that is locked or vesting.

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What makes DAMM v2 unique?

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Concentrated Liquidity

DAMM v2 can create pools with a fixed minimum and maximum square-root price. Liquidity inside that range is active for swaps; exact-in swaps that would move beyond the boundary fail unless the partial-fill swap path is used. This is useful for launch teams that want tighter market depth around an expected price area, or for integrators that want predictable pool boundaries.

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Compounding Liquidity

DAMM v2 also supports a compounding mode where the pool behaves like a full-range constant-product AMM. A configurable share of the LP fee is added back into pool reserves, while the remaining LP fee stays claimable by positions. This is useful for long-lived pools where LPs want passive liquidity growth and less operational overhead.

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Flexible Fees

DAMM v2 separates fee behavior into layers:

• A base fee mode defines the pool’s primary trading fee behavior, powered by our anti-sniping mechanisms.
• An optional dynamic fee raises fees when volatility increases.
• In compounding mode, a share of the LP fee can be reinvested into pool reserves.

The five base fee modes are time scheduler linear, time scheduler exponential, rate limiter, market-cap scheduler linear, and market-cap scheduler exponential. The total fee is capped by the pool fee version which is currently set to 99% max fee.

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NFT Positions

Every DAMM v2 position is backed by a unique position NFT. The NFT is the ownership handle for the position, so transferring the NFT transfers control of the liquidity position. Positions can also be split, which makes it easier to separate liquidity tranches, distribute ownership, or transfer part of a position without closing the whole thing.

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Liquidity Mining

DAMM v2 includes liquidity mining in the pool program itself. A pool can support up to two reward tokens, and rewards accrue to positions based on each position’s share of total pool liquidity. This gives projects a direct way to incentivize LPs without deploying and managing a separate staking contract.

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Who DAMM v2 Is For

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Explore DAMM v2