DAMM v1 Pools With Farms

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 pools can be paired with external farms. A farm lets LPs stake their DAMM v1 LP tokens in a separate reward program and earn additional reward tokens funded by a project, partner, or campaign sponsor. This gives teams a way to incentivize liquidity without changing the underlying AMM pool. The pool continues to support swaps and earn trading fees. The farm adds a separate reward layer around the LP token.

​

Why add a farm?

Liquidity is a marketplace. LPs compare expected return, token risk, depth, duration, and opportunity cost. A farm helps a project make its pool more attractive by adding explicit token incentives. Farms are useful when a project wants to:

• Bootstrap liquidity for a new or strategic market.
• Retain LPs during an important launch or campaign window.
• Compete for routing volume on aggregators.
• Reward early liquidity supporters.
• Add incentives while the pool’s organic trading fee revenue is still growing.

​

How DAMM v1 farms work

The DAMM v1 farm model is simple:

​

Reward distribution

External farms distribute rewards based on staked LP token share. $$\text{reward rate} = \frac{\text{funded reward amount}}{\text{reward duration}}$$ $$\text{user reward} = \text{user staked share} \times \text{rewards emitted during the period}$$ If a user stakes 10% of all LP tokens in the farm, they earn roughly 10% of the emitted rewards during the period they remain staked, subject to exact on-chain accounting and timing.

​

What LPs can earn

A DAMM v1 pool with a farm can have several return layers:

• Swap fees from trading activity in the AMM pool.
• Dynamic Vault yield if eligible pool assets are connected to Dynamic Vault strategies.
• Farm rewards from the reward pool.
• Partner incentives when a campaign adds additional reward sources.

​

Farm design choices

A good farm campaign should answer five product questions:

​

What behavior are you incentivizing?

Most farms incentivize liquidity depth. The project wants LPs to keep capital in the pool so traders get better execution.

​

Which reward token should be used?

Reward tokens should be meaningful to the LP audience. Many campaigns use a project token, partner token, or strategic ecosystem incentive.

​

How long should rewards last?

Short campaigns can bootstrap attention, but they may attract mercenary liquidity. Longer campaigns can support stability but require larger budgets. A common starting point is a multi-week campaign.

​

How much liquidity is needed?

The reward budget should match the target pool depth. Overpaying can waste emissions. Underpaying may fail to move liquidity.

​

What happens when rewards end?

A farm is healthiest when it bridges a pool toward organic sustainability: trading volume, vault yield, integrations, and stronger user demand.

​

Permissioned farm creation

Farm creation for legacy DAMM v1 pools is typically coordinated rather than created through the AMM pool itself. If you need a farm for a DAMM v1 pool, prepare the following information before contacting Meteora:

• DAMM v1 pool address or pool link.
• Reward token A mint address.
• Reward token B mint address, if using a second reward token.
• Reward duration in seconds.
• Intended campaign objective and expected start timing.

​

Farms vs Dynamic Vault yield

Farms and Dynamic Vault yield solve different problems.

• Farms are explicit incentives funded by a project or partner. They are great for targeted campaigns but depend on a finite reward budget.
• Dynamic Vault yield comes from eligible idle liquidity being allocated to external strategies. It can support a pool’s baseline return profile but depends on available lending yield and strategy risk.

The strongest DAMM v1 pools often combine both: vault yield for ongoing capital productivity, farms for strategic growth moments, and swap fees for organic demand.