Fee Scheduler

Available on DAMM v1, DAMM v2 and DBC.

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

DAMM v1 uses an on-chain fee scheduler. 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)

For more information on DAMM v1 pool and fee configuration, visit here.

DAMM v2

DAMM v2 uses an on-chain fee scheduler. For a DAMM v2 pool using the fee scheduler, the default fee schedule config used on the Meteora frontend is based on an Exponential curve, 50% when pool trading starts, and dropping every second for 120 min, ending at 0.25%. DAMM v2 also offers creators and integrators the option of a Linear curve if required.

Read about how Pump.Science uses DAMM v2's Fee Scheduler for its token launchpad.

Fee Schedule (Exponential) Example

Just as an example, here's a look at the % fee at different time intervals:

• 50% - when pool trading starts

• 32.15% - 10 min after pool trading starts (10 min after 50% starts)

• 20.67% - 20 min after pool trading starts (10 min after 32.15% starts)

• 13.29% - 30 min after pool trading starts (10 min after 20.67% starts)

• 8.55% - 40 min after pool trading starts (10 min after 13.29% starts)

• 5.50% - 50 min after pool trading starts (10 min after 8.55% starts)

• 3.53% - 60 min after pool trading starts (10 min after 5.50% starts)

• 2.27% - 70 min after pool trading starts (10 min after 3.53% starts)

• 1.46% - 80 min after pool trading starts (10 min after 2.27% starts)

• 0.94% - 90 min after pool trading starts (10 min after 1.46% starts)

• 0.60% - 100 min after pool trading starts (10 min after 0.94% starts)

• 0.39% - 110 min after pool trading starts (10 min after 0.60% starts)

• 0.25% - 120 min after pool trading starts (10 min after 0.39% starts)

Fee Schedule (Linear ) Example

Notes on DAMM v2 Fee Scheduler

By default, LP Fees drop over time per second. But partners using the pool creation setup script have the following options:

• Time based: Fees change per second

• Slot based: Fees change per slot (1 slot = 1 block = 0.4 secs)

For more information on DAMM v2 pool and fee configuration, visit here.

DAMM v2 Fee Scheduler Calculation

• when in linear feeSchedulerMode: fee = cliff_fee_numerator - (period * reduction_factor)

• when in exponential feeSchedulerMode: fee = cliff_fee_numerator * (1 - reduction_factor/10_000)^period

baseFee: {
            cliffFeeNumerator: BN // Initial fee numerator (base fee)
            numberOfPeriod: number // The number of reduction periods
            reductionFactor: BN // How much fee reduces in each period
            periodFrequency: BN // How often fees change
            feeSchedulerMode: number // 0: Linear, 1: Exponential

Dynamic Bonding Curve (DBC)

Partners (e.g. launchpads) that integrate DBC to create and launch tokens on their platform, can also configure a fee scheduler as part of the virtual bonding curve.

This way, even before the token is migrated to an actual liquidity pool, snipers that are the first to buy tokens on the virtual bonding curve are subjected to higher swap fees.

Which Launch Pools support the Fee Scheduler feature?

The Fee Scheduler feature is available as an option for DAMM v1 Launch Pools, DAMM v2 Launch Pools, as well as Dynamic Bonding Curve (DBC).

In addition, Fee Scheduler can be used together with Dynamic Fee to bolster the defence against sniper bots at launch.