> ## 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.

# What is DAMM v2?

> DAMM v2 is Meteora's concentrated-liquidity constant-product AMM. It combines custom price ranges, flexible fee modes including auto-compounding, NFT-backed positions, built-in farming, and liquidity vesting — all in a single on-chain program.

## Overview

DAMM v2 (Dynamic AMM v2) is Meteora's next-generation liquidity protocol on Solana. Built on the **cp-amm** program, it gives token creators and LPs fine-grained control over how pools are configured, how fees are collected, and how liquidity is locked and released.

# Key Features

DAMM v2 comes with the following features.

<CardGroup cols={2}>
  <Card title="Concentrated Liquidity" icon="chart-line" iconType="solid">
    LPs concentrate capital in a chosen price range to earn more fees per dollar deployed. Supports full-range (x·y=k) as a special case.
  </Card>

  <Card title="Three Fee Modes" icon="coins" iconType="solid">
    **BothToken** — fees in both tokens. **OnlyB** — fees in quote token only. **Compounding** — a configurable share of fees auto-reinvests back into pool liquidity.
  </Card>

  <Card title="NFT-Backed Positions" icon="image" iconType="solid">
    Each LP position is tied to a position NFT. Positions track unlocked, vested, and permanently locked liquidity separately.
  </Card>

  <Card title="Built-in Farming" icon="seedling" iconType="solid">
    Up to 2 reward tokens per pool. Rewards accrue pro-rata based on total position liquidity — no separate staking contract needed.
  </Card>

  <Card title="Liquidity Vesting" icon="lock" iconType="solid">
    Lock liquidity with cliff + linear vesting schedules, or lock permanently. Both inner vesting (single account) and external vesting accounts supported.
  </Card>

  <Card title="Compounding Fee Mode" icon="arrows-rotate" iconType="solid">
    A percentage of trading fees can be set to auto-compound directly into pool reserves via `compounding_fee_bps`. The pool operates as a standard constant-product AMM in this mode, with no concentrated price range.
  </Card>

  <Card title="Anti-Sniper Controls" icon="shield" iconType="solid">
    Set an activation point (by slot or timestamp) to delay trading. Pair with an Alpha Vault or presale vault for whitelisted early access.
  </Card>

  <Card title="Dynamic + Scheduled Fees" icon="sliders" iconType="solid">
    5 base fee modes: time-decay linear/exponential, market-cap-based linear/exponential, and rate limiter. Combine with volatility-based dynamic fees.
  </Card>

  <Card title="Token 2022 Support" icon="certificate" iconType="solid">
    Permissionless and permissioned support for SPL Token 2022 with extensions.
  </Card>
</CardGroup>

# Pool Creation Options

DAMM v2 supports three ways to create a pool, each offering different levels of control:

| Method                                | Description                                                                                                                                  |
| ------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- |
| `initialize_pool`                     | Creates a pool using a pre-defined **static config** created by Meteora. Fee parameters are fixed.                                           |
| `initialize_pool_with_dynamic_config` | Creates a pool using a **dynamic config**. The pool creator defines all fee parameters during creation.                                      |
| `initialize_customizable_pool`        | Creates a **fully customizable** pool where the pool creator sets all parameters including fee mode, dynamic fees, and compounding settings. |

<Note>All three creation methods support `collect_fee_mode = 2` (Compounding) and `compounding_fee_bps` configuration.</Note>

# Position Features

Each liquidity position in DAMM v2 is represented by an NFT, making positions transferable between wallets.

## Liquidity Locking & Vesting

Positions support three liquidity states:

| State                  | Description                                                                                         |
| ---------------------- | --------------------------------------------------------------------------------------------------- |
| **Unlocked**           | Can be withdrawn at any time by the position owner.                                                 |
| **Vesting**            | Time-locked liquidity that gradually becomes unlocked based on a cliff + periodic release schedule. |
| **Permanently Locked** | Cannot be withdrawn ever, but still earns trading fees and farming rewards.                         |

Use `lock_position` or `lock_inner_position` to vest liquidity directly within a position (no separate vesting account required). Use `permanent_lock_position` to permanently lock liquidity. Call `refresh_vesting` to release vested liquidity that has reached its unlock time.

<Note>`lock_inner_position` stores vesting state inside the position itself, enabling better composability with other programs.</Note>

## Position Splitting

Position owners can split a position into two using `split_position` or `split_position2`. The split proportionally divides:

* Unlocked, vested, and permanently locked liquidity
* Pending trading fees (both tokens)
* Pending farming rewards
* Inner vesting state

This is useful for partially transferring or selling a portion of a position.

# Swap Modes

DAMM v2 supports two swap instructions:

| Instruction | Modes                                      |
| ----------- | ------------------------------------------ |
| `swap`      | ExactIn only (deprecated)                  |
| `swap2`     | ExactIn (0), PartialFill (1), ExactOut (2) |

<Warning>The original `swap` instruction and the `EvtSwap`, `EvtRemoveLiquidity`, and `EvtAddLiquidity` events are deprecated. Use `swap2` and `EvtSwap2` / `EvtLiquidityChange` instead.</Warning>

<Note>For pools with Rate Limiter enabled (`baseFeeMode == 2`), the `SYSVAR_INSTRUCTIONS_PUBKEY` must be included in the remaining accounts of the swap instruction.</Note>

# Farming Rewards

DAMM v2 has a built-in farming mechanism (no separate farm program required). Each pool supports up to **2 reward tokens** simultaneously.

* Pool creators can permissionlessly initialize the first reward (index 0) for their own pool
* Rewards are distributed proportionally based on position liquidity (including unlocked, vesting, and permanently locked)
* LPs claim rewards via `claim_reward`
* The `skip_reward` parameter allows claiming even if a reward vault is frozen

# Case Studies

## Program Address

| Network | Address                                       |
| ------- | --------------------------------------------- |
| Mainnet | `cpamdpZCGKUy5JxQXB4dcpGPiikHawvSWAd6mEn1sGG` |
| Devnet  | `cpamdpZCGKUy5JxQXB4dcpGPiikHawvSWAd6mEn1sGG` |

***

## Key Concepts

### Pool Types

A DAMM v2 pool is always a **constant-product** pool (x·y=k within a price range). Two config types exist:

* **Static Config** — Pool parameters (fee, price range, collect fee mode) are fixed at config creation. Pools inherit them.
* **Dynamic Config** — Pool creator can specify custom parameters at pool creation time (private configs only).

### Positions

Every LP position is an on-chain account backed by a **position NFT**. The NFT is the ownership token — whoever holds it can manage the position. A position tracks three liquidity buckets:

| Bucket                       | Description                             |
| ---------------------------- | --------------------------------------- |
| `unlocked_liquidity`         | Available to withdraw freely            |
| `vested_liquidity`           | Released on a cliff + periodic schedule |
| `permanent_locked_liquidity` | Never withdrawable                      |

### Activation & Trading Gating

Pools can have an **activation point** (a future slot or timestamp) before which trading is disabled. This is used for:

* Fair launch countdowns
* Alpha Vault presale windows
* Coordinated launch times across platforms

***

## Fee Architecture

DAMM v2 fees have three layers:

```
Total Trading Fee
  ├── Protocol Fee (20%)
  │     └── Referral Fee (20% of protocol fee, if referral)
  └── LP Fee (80%)
        └── [Compounding only] compoundingFeeBps portion → back into pool reserves
```

See [Fee Configuration](/overview/products/damm-v2/fee-configuration) and [Collect Fee Modes](/overview/products/damm-v2/collect-fee-modes) for details.

***

## Quick Links

<CardGroup cols={2}>
  <Card title="Pool Types & Configuration" href="/overview/products/damm-v2/pool-types" icon="gear">
    Static vs dynamic config, price ranges, pool parameters
  </Card>

  <Card title="Collect Fee Modes" href="/overview/products/damm-v2/collect-fee-modes" icon="coins">
    BothToken, OnlyB, and Compounding explained
  </Card>

  <Card title="Fee Configuration" href="/overview/products/damm-v2/fee-configuration" icon="percent">
    Base fee modes, dynamic fee, protocol fee
  </Card>

  <Card title="Position Management" href="/overview/products/damm-v2/position-management" icon="wallet">
    Creating positions, adding/removing liquidity
  </Card>

  <Card title="Liquidity Locking" href="/overview/products/damm-v2/liquidity-locking" icon="lock">
    Vesting schedules and permanent locks
  </Card>

  <Card title="Farming Rewards" href="/overview/products/damm-v2/farming-rewards" icon="seedling">
    Setting up and claiming in-pool rewards
  </Card>
</CardGroup>