> ## Documentation Index > Fetch the complete documentation index at: https://docs.meteora.ag/llms.txt > Use this file to discover all available pages before exploring further. # DAMM v1 Pool Design Guide > Choose the right DAMM v1 pool type, yield layers, farm setup, fee interpretation, and liquidity commitment for a legacy Meteora pool. DAMM v1 is a legacy product, but many teams still need to understand how to evaluate or maintain an existing DAMM v1 pool. This guide helps you think like a product owner: what kind of market are you creating, what LP behavior do you want, and what return stack supports that behavior? ## Step 1: Choose the pool curve ### Use a constant-product pool for volatile markets Choose a constant-product DAMM v1 pool when the token pair needs open-ended price discovery. Good fit: * Project token paired with SOL or USDC. * Long-tail assets. * Markets where price can move significantly. * Liquidity that should cover a wide price range. Product tradeoff: liquidity is spread across the full curve, so it is simple and robust, but not as capital efficient around a narrow price band. ### Use a stable pool for pegged or correlated assets Choose a stable pool when both assets should trade close to a target relationship. Good fit: * Stablecoin pairs. * Correlated assets. * Assets where low slippage near a peg is more important than wide price discovery. Product tradeoff: stable pools are efficient near the target relationship, but they are not designed for assets that can freely reprice against each other. ### Use an LST pool for supported SOL/LST markets Choose an LST-aware stable pool when token A is native SOL and token B is a supported liquid staking token. In DAMM v1, this is a permissioned depeg configuration rather than a generic permissionless stable-pool option. Good fit: * LST protocols building liquidity. * SOL/LST swap routes. * Markets where the LST appreciates against SOL over time. Product tradeoff: LST pools improve the fit for staking-token markets, but teams still need to account for LST protocol risk and depeg risk. ## Step 2: Understand the LP return stack DAMM v1 LP returns can come from several layers: Organic trading demand pays fees that can increase the value backing LP tokens. Eligible idle assets may earn external strategy yield through Dynamic Vaults. External farms can distribute campaign rewards to staked LP tokens. Locked LP tokens can signal long-term support and improve market confidence. A strong pool does not need every layer, but it should have a clear reason for why LPs will stay. ## Step 3: Decide whether the pool needs a farm A farm is useful when organic fees and vault yield are not enough to attract the target depth. It is a separate incentive layer around DAMM v1 LP tokens, not a setting inside the AMM pool state. Use a farm when: * The market is new and needs bootstrapping. * The project wants to compete for aggregator routing. * A partner wants to reward LPs for supporting strategic liquidity. * The pool needs a campaign window around launch, migration, or growth. Avoid relying only on farms when: * The reward budget is too small to change LP behavior. * There is no plan for liquidity after incentives end. * The reward token is highly volatile and could distort displayed APR. * The pool has no expected trading demand. ## Step 4: Evaluate Dynamic Vault fit Dynamic Vault yield is valuable when the pool contains supported assets such as major stablecoins or SOL. It is less relevant when a token side has no supported vault strategy. Ask: * Does one side or both sides of the pool have Dynamic Vault support? * How much of the return expectation comes from vault yield? * What external strategy risks does the vault introduce? * How important is immediate withdrawal liquidity for this LP audience? Vault yield is best used as a durability layer, not as the only reason to LP. ## Step 5: Decide whether to lock liquidity Liquidity locks are useful when trust and continuity matter. Consider a lock when: * The project wants to demonstrate long-term liquidity commitment. * The pool is part of a token launch or migration. * Community members are concerned about sudden liquidity removal. * A partner or launchpad requires a visible commitment. A lock improves confidence, but it does not eliminate market risk. Locked LP tokens are still exposed to the pool's assets and the pool's underlying mechanics. ## Step 6: Read APY as components, not one number When reviewing a DAMM v1 pool, split the displayed return into parts: * **Base APY** from virtual price growth. * **Fee-over-TVL** from recent trading fees. * **Vault yield** from eligible Dynamic Vault strategies. * **Farm APR** from reward emissions. This prevents a common mistake: treating a temporary farm APR as if it were permanent pool yield. ## Step 7: Match the pool to the audience ### Traders Traders care about execution quality: depth, slippage, reliability, and routing. ### LPs LPs care about return, risk, ease of withdrawal, asset exposure, and incentive duration. ### Projects Projects care about liquidity depth, market confidence, token distribution, and sustainability after campaigns end. ### Integrators Integrators care about predictable pool behavior, existing liquidity, and whether the market is still maintained. A good DAMM v1 pool design aligns all four groups. ## Recommended DAMM v1 patterns ### Stablecoin pool * Use a stable pool. * Prioritize low slippage and routing volume. * Use Dynamic Vault yield where supported. * Add farms only when you need extra campaign depth. ### SOL/LST pool * Use an LST-aware stable pool when supported. * Emphasize virtual price tracking and reduced staking-token mismatch. * Consider partner rewards during early liquidity growth. * Educate LPs on LST and depeg risk. ### Long-tail token pool * Use a constant-product pool. * Consider a liquidity lock for trust. * Use farms for launch or migration windows. * Be realistic about organic volume after incentives end. ## Final checklist Before promoting or maintaining a DAMM v1 pool, answer: * What curve does this market need: constant-product, stable, or LST? * What assets are in the pool, and what risks do they introduce? * Does the pool have eligible Dynamic Vault yield? * Is there an active farm, and when does it end? * How are fees and APY displayed to LPs? * Is any liquidity locked? * What is the plan after incentives decline? The best DAMM v1 pools are not just high-APR pools. They are pools with a clear market purpose, sustainable LP reasons, and transparent tradeoffs.