What is DAMM v1?

Documentation Index

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DAMM v1 is Meteora’s original Dynamic AMM on Solana. It is a legacy liquidity product for teams, integrators, and liquidity providers who need to understand existing Meteora LP-token pools. At the surface, a DAMM v1 pool feels familiar: two SPL tokens, shared liquidity, LP tokens, swaps, trading fees, and pool ownership represented by LP shares. Under the hood, each side of the pool is represented by a Meteora Dynamic Vault position. The AMM converts those vault LP positions back into token amounts when it prices swaps, mints LP tokens, processes withdrawals, or calculates virtual price.

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Why DAMM v1 matters

DAMM v1 was built for a simple problem: liquidity is expensive to attract and even more expensive to keep. Traditional AMMs usually rely on two sources of LP return: swap fees and token incentives. DAMM v1 adds vault-backed composition: when the connected Dynamic Vault for an asset has supported strategies, idle liquidity may earn additional yield while the AMM continues to support swaps and withdrawals. That makes DAMM v1 especially useful for:

• Long-tail token markets that need dependable full-range liquidity.
• Stable asset pairs that need low-slippage swaps near a target peg.
• LST markets where the staking token appreciates against SOL over time.
• Partner-incentivized pools where projects use external farms or campaigns on top of AMM fees.
• Community confidence pools where teams want to lock liquidity while fees continue to accrue.

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Product pillars

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How DAMM v1 works

A DAMM v1 pool has two token sides: token A and token B. When LPs deposit both assets, they receive LP tokens that represent their share of the pool. Traders swap against the pool, and the pool updates its reserves according to the curve selected for that market. DAMM v1 supports two major curve families:

• Constant-product pools use the familiar x × y = k model. They are best for volatile assets where the price can move freely across a wide range.
• Stable pools use an amplified StableSwap curve. They are best for assets that should trade close together, such as stablecoins or certain SOL/LST pairs.

The pool itself does not simply hold raw token balances. Each side points to a Dynamic Vault. The DAMM v1 program tracks the pool’s vault LP position and converts it back into total token value when swaps, deposits, withdrawals, and locks happen. For exact limits, see Implementation and Limits.

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LP return stack

DAMM v1 LPs can earn from multiple layers depending on the pool configuration:

1. Trading fees from swaps through the pool.
2. Dynamic Vault yield when eligible assets such as USDC, USDT, or SOL are routed through supported vault strategies.
3. External farming rewards when a project or partner funds a separate reward program for staked DAMM v1 LP tokens.
4. Partner or campaign incentives when additional programs reward DAMM v1 liquidity.

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DAMM v1 vs DAMM v2

DAMM v1 is a legacy product. It remains important because many pools and integrations were built around its LP-token model, Dynamic Vault composition, stable pool design, and farming program. DAMM v2 is the newer configurable AMM. It adds modern product controls such as NFT positions, concentrated liquidity options, launch-ready fee modes, built-in liquidity mining, Token 2022 support, and more granular pool configuration. Use the DAMM v1 documentation to reference details about existing legacy pools, stable pools, LST pools, earlier farm structures, or vault-backed liquidity. If you are creating a new pool or want to leverage the latest features, integrations, and controls, we recommend using DAMM v2. Please refer to the DAMM v2 documentation for guidance on building with the current Meteora AMM product suite.

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Explore DAMM v1