A.S.S. for DAMM v1
Anti-sniper tech for DAMM v1 includes the Fee Scheduler (off-chain) and Alpha Vault.
1. Fee Scheduler
Creators have the option to use a pool with a configurable fee schedule where the base fee starts high and drops over time (linearly or exponentially). This is designed to deter sniper bots by imposing higher fees during the start of the launch and initial launch phase.
How does it work?
A fee schedule for a pool can be configured, where the % fee charged per swap changes over time, ending at a % base fee set by the pool creator. The change in fee can be based on a linear or exponential curve.
Token launches or integrators can use their preferred config when setting up their pool.
Current Default Fee Schedule on Meteora Frontend
These parameters for the Fee Scheduler can be configured in advance, but the Meteora uses a few default configurations when a pool is created via the UI.
DAMM v1
For a DAMM v1 pool using the fee scheduler, the default global fee schedule config used on the Meteora frontend is based on a Linear curve, with the following schedule:
15% - when pool trading starts
7% - 10 min after pool trading starts (10 min after 15% starts)
5% - 130 min after pool trading starts (120 min after 7% starts)
2% - 250 min after pool trading starts (120 min after 5% starts)
1% - 370 min after pool trading starts (120 min after 2% starts)
0.5% - 490 min after pool trading starts (120 min after 1% starts)
0.25% - 24 hours after pool trading starts (950 min after 0.5% starts)
2. Alpha Vault
Alpha Vault is a complementary anti-bot mechanism used together with a Launch Pool that provides early access for genuine supporters to deposit and purchase tokens before the pool starts trading, thereby getting tokens at the earliest price and helping to safeguard the token launch against sniper bots.
Projects who use the Alpha Vault have the flexibility to tailor vault parameters to suit their specific token launch requirements, such as setting maximum purchase limits and defining the lock-up and vesting periods for users.
Key Features and Benefits
First-to-purchase ability to front run snipers: The Alpha Vault is whitelisted to buy tokens from the liquidity pool before the launch activation slot, so Alpha Vault users can buy the token at the earliest (and likely lowest) price before the activation slot and thus before sniper bots.
Fairer distribution: All vault users get their tokens at the same average price and the amount of tokens received is proportional to their share of the total amount of SOL or USDC deposited.
Configurable parameters for token launches: Projects can configure vault parameters such that tokens bought by the vault are locked for a day or more, and subsequently vested for a few days, encouraging purchase by genuine supporters of the project.
How does it work?
The Alpha Vault for the Launch Pool is first created together with the Launch Pool, using the project’s preferred configurations for the Alpha Vault and pool, including:
Alpha Vault mode: Pro rata or FCFS
To accept SOL or USDC deposits
Alpha Vault Max Buy Cap
Pool activation slot/time
Token lock-up period
Vesting Period for token claims
To whitelist addresses for deposits or not
Individual address purchase cap
Deposit Period
The Alpha Vault doesn’t hold any tokens at the start. During the deposit period, the Alpha Vault will accept either SOL or USDC from depositors.
There needs to be a buffer period of at least roughly ~1 hour 5 min between the end of the Alpha Vault deposit period and the pool activation time.
Buying Period
The Alpha Vault is whitelisted to buy tokens from the pool BEFORE the pool is activated to start trading. After the deposit period ends (and before the pool starts trading), the SOL or USDC collected in the Alpha Vault is used to purchase tokens from the pool.
This is essentially a token swap, which means SOL or USDC from the Alpha Vault goes into the pool, while tokens purchased from the pool go into the Alpha Vault. The token pool price would increase from the initial price, based on the token amount purchased by the Alpha Vault.
If the Alpha Vault is using the Pro rata mode (which accepts unlimited deposits), depositors are able to withdraw any unused SOL or USDC that exceeded the Alpha Vault max buy cap.
Token Claiming
When the token unlocks for claiming, the Alpha Vault then distributes the tokens to depositors. Depositors get tokens at the same price, and the amount of tokens received is based on their share of the total deposits.
Creators can configure the Alpha Vault to their preference; whether token claiming is unlocked immediately when the pool starts trading or at a later time/date, and whether there is a vesting period for token claims.
This vesting solution has the dual benefit of mitigating against sniper bots as well as encouraging purchase from the strongest and most genuine supporters of the project, since they would be more willing to hold their tokens for a longer period. This helps ensure greater alignment between projects and token holders.
Example Flow (Pro Rata mode example)
Alpha Vault Modes
Pro Rata
FCFS (First come first serve)
Pro Rata
In Pro Rata mode, the Alpha Vault is able to accept unlimited deposits of SOL or USDC, even exceeding the Alpha Vault Max Buy Cap.
After depositing SOL or USDC, depositors can choose to withdraw anytime before the end of the deposit period if they change their mind.
Once the deposit period ends, users can no longer deposit more SOL or USDC or withdraw their earlier deposit. The vault becomes active and after a short buffer period, will begin using the funds collected to buy tokens from the pool.
However, the Alpha Vault would only buy tokens up to the max buy cap. As such, if the deposits by users into the Alpha Vault had exceeded the max buy cap, there will be unused funds, and they can be withdrawn by depositors.
For example, you deposited 100 USDC and TVL in the vault (total deposited) is 10M USDC, but the vault max cap is 1M USDC. Only 1/10th of your USDC deposit will be used to purchase tokens. 90 USDC from your 100 USDC deposit will be unused and returned to you.
All vault users get their tokens at the same price and the amount of tokens received is proportional to your share of the total amount of SOL or USDC deposited.
FCFS
FCFS (First Come First Serve) follows a similar process to Pro Rata mode, but with the following differences:
Unlike Pro rata mode, in FCFS mode, during the deposit period, Alpha Vault max buying cap = max amount of deposits the Alpha Vault accepts. Users can deposit as much as they want initially, but as soon as the vault’s reserve reaches the deposit/buy cap, then no one can deposit more (TVL cannot exceed Vault Max Cap). In other words, deposits are first come first served, up to the Alpha Vault max deposit/buy cap.
For example: If Vault Max Cap is 1M USDC, and a single user is the first to deposit 1M USDC right when deposits open, the vault gets fully filled and no longer accepts further deposits.
By default, each user has no individual deposit cap, which means a single user can technically fill up the entire Alpha Vault deposit/buy cap. However, if required, the project can specify an individual user cap and/or submit a whitelist to allow only certain wallets to deposit.
Once a user deposits funds, the user cannot withdraw them, even during the deposit period.
In FCFS mode, there won’t be any unused USDC or SOL. All deposits would be used to buy the token.
After the Alpha Vault buys the tokens, all depositors will also get tokens at the same average price.
Past Alpha Vault Launches
Projects that have used Alpha Vault for their token launches include UpRock (UPT), Sanctum (CLOUD), dVin Labs (VIN), deBridge (DBR), Streamflow (STREAM), SonicVM (SONIC), and Sendcoin (SEND).
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