Technical FAQ

Position NFT

What does the position state of the NFT manage?

The position state manages unlocked_liquidity + locked_liquidity + vested liquidity.

User can interact with the following flows in the same, single position:

• Permanently lock part of the liquidity

• Create multiple vesting schedules

• Add more liquidity (unlocked liquidity)

Can I transfer a position NFT (which represents a liquidity position)?

Yes. For example, you already have a position in a pool, which is represented by a position NFT. Someone also has a position in that same pool and he sends you his position NFT. Now you would have 2 position NFTs (positions) for the same pool.

Farming

How does Farming work in DAMM v2?

For DAMM V2, there is an in-built farming mechanism within the program. This is unlike DAMM v1, where there is a separate farming program.

For DAMM v2, each specific pool can create farming rewards and the pool has its own unique reward vault. Each reward vault can have a maximum of 2 types of reward tokens.

When the initialize_reward program endpoint is used, a reward_vault for the specific pool is created, and the initiator can specify the reward token (max 2 types) for the reward_vault

Rewards will be shared with all liquidity providers over the farming duration.

Currently, in this beta stage:

• The initialize_reward program endpoint can only be initialized by Meteora's admin

• And only a whitelisted funder address can fund rewards into this reward_vault

So for now, projects have to reach out to the Meteora team to create a farm and add rewards. But we're exploring ways to make this process permissionless at a later stage.

Using Meteora Frontend

When you deposit tokens into the pool, how is the LP token amount calculated?

When you deposit the token amounts on Meteora FE, it will calculate and the specify lp_token before it sends to the program to execute.

Example:

• From token B: amount_b = lp_token (pool.current_sqrt_price - pool.min_sqrt_price)

• so you can reverse: lp_token = (pool.current_sqrt_price - pool.min_sqrt_price) / amount_b

Which DAMM v2 pools are considered a Memecoin Pool or a Volatile Pool?

• Memecoin Pool:

  • A pool initialized with the program endpoint InitializeCustomizablePool will be tagged as meme

  • A Memecoin Pool has the Fee Scheduler feature enabled, while a Volatile Pool does not.

• Volatile Pool:

  • A pool initialized with the program endpoint InitializePool will be tagged as volatile

What is the Pool Authority address of the cp-amm (DAMM v2) program (PDA)?

• HLnpSz9h2S4hiLQ43rnSD9XkcUThA7B8hQMKmDaiTLcC

How is the fee collected when the pool creator selects fee collection mode as Quote only?

Regarding how DAMM 2 collects fee only using the Quote token ("Token B"):

• If a user swaps from A -> B, fee is charged on B; protocol takes some of the user's B

• If a user swaps from B -> A, fee is charged on B before the swap is calculated; protocol takes some of the user's B before it gets swapped to A

For a new DAMM v2 Pool, can you set a min-max price range, while enabling imbalanced deposit for the pool?

No. You can only set a min-max price range. DAMM v2 is still a constant product AMM (DAMM v1 too), so it needs to abide by a balanced ratio deposit.

If you need to set a min-max price range, as well as implement imbalanced deposits for the pool, you need to use DLMM.

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For more technical information, please refer to Github at CP-AMM (DAMM v2) SDK Documentation

For a high level overview of DAMM v2, please read DAMM v2 Overview