Meteora
  • Meteora: The most dynamic and sustainable liquidity layer on Solana
  • PRODUCT OVERVIEW
    • Meteora Liquidity Pools
      • DLMM Overview
        • What is DLMM?
        • DLMM Program
        • Dynamic Fees
        • Strategies & Use Cases
        • DLMM Farming Rewards
      • DLMM Launch Pool Overview
      • Dynamic AMM Overview
        • What is a Dynamic AMM Pool?
        • Dynamic AMM LP Fee and APY Calculation
        • Creating a Dynamic AMM Pool via the UI
        • Claiming Fees from Permanently Locked Liquidity
        • Dynamic AMM Stable Pools
        • Dynamic LST Pools
        • Additional yield from Dynamic Vaults
        • Dynamic AMM Farm Overview
      • DAMM v2 Overview
      • Memecoin Pool Overview
        • Memecoin Pool v2
          • What is Memecoin Pool v2?
        • Memecoin Pool v1
          • What is Memecoin Pool v1?
          • Permanently Locking Liquidity
      • Stake2Earn Pool Overview
        • What is a Stake2Earn Pool?
        • Stake2Earn for Launchpads
      • Multi-Token Stable Pool Overview
    • Alpha Vault Overview
    • Dynamic Vault Overview
      • What is a Dynamic Vault?
      • Dynamic Vault Program
      • Hermes - Meteora's Keeper
        • Algorithm to find optimal yield allocations
        • Rebalance crank
        • Operation fee calculation
      • Design Goals
      • Security
      • Dynamic Vaults Whitepaper
      • Dynamic Vaults Community Explainers
      • Affiliate Program for Dynamic Vault
        • Become an Affiliate Partner (Dynamic Vaults)
    • Dynamic Bonding Curve (DBC) Overview
      • What is the Dynamic Bonding Curve?
      • Customizable Pool Configuration
      • Bonding Curve Formula
      • DBC Migrator Keeper
    • Meteora’s Anti-Sniper Suite
  • INTEGRATION
    • DLMM Integration
      • DLMM SDK
        • DLMM TypeScript SDK
        • CPI Examples
      • DLMM API
      • Fetching information on locked liquidity in a DLMM
    • Dynamic AMM Pool Integration
      • Dynamic AMM SDK
        • Dynamic AMM TypeScript SDK
        • CPI Examples
      • Dynamic AMM API
        • Pool Info
        • Pool State
      • Setting Pool and Fee Config for Dynamic AMM Pools
      • Create Dynamic Pool with Timestamp/Slot Activation
      • Dynamic AMM - Farm Integration
    • DAMM v2 Integration
      • DAMM v2 SDK
        • DAMM v2 TypeScript SDK
        • DAMM v2 Rust SDK
      • Setting Pool and Fee Config for DAMM v2
      • Technical FAQ
    • Memecoin Pool Integration
      • Memecoin Pool v2 Integration
        • Setting Pool and Fee Config for Memecoin Pool v2
      • Memecoin Pool v1 Integration
        • TypeScript Code Examples
        • CPI Examples
        • Setting Pool and Fee Config for Memecoin Pool v1
        • Track permanently-locked liquidity in Memecoin Pool v1
        • Track Protocol Fee from swaps in Memecoin Pool v1
    • Stake2Earn Pool Integration
    • Dynamic Vault Integration
      • Using TypeScript-Client
      • Using Rust-Client
      • Using CPI
      • Vault API
        • Vault Info
        • Vault State
      • Vault Developer Resources
    • Alpha Vault Integration
      • Alpha Vault TypeScript SDK
      • Alpha Vault without Whitelist Setup
      • Alpha Vault with Whitelist Setup
    • Dynamic Bonding Curve (DBC) Integration
      • DBC SDK
        • DBC TypeScript SDK
        • DBC Rust SDK
      • DBC Fee Scheduler Formula
      • Program Repo
      • Technical FAQ
  • TOKEN LAUNCH POOLS
    • Steps to Create a Pool for a Token Launch
      • Create: DLMM Launch Pool
      • Create: Dynamic AMM Pool
      • Create: Memecoin Pool v1
      • Create: Stake2Earn Pool
      • Create: Pools with Alpha Vault
        • Create: DLMM Launch Pool with Alpha Vault
        • Create: Dynamic AMM Pool with Alpha Vault
        • Create: Memecoin Pool with Alpha Vault
        • Create: Stake2Earn Pool with Alpha Vault
    • Anti-Sniper Fee Suite for a Token Launch
  • Resources
    • Audits
    • Meteora Program IDs
    • Meteora APIs
    • Devnet Testing
    • Community Data Dashboards & Tools
    • Meteora Brand Assets
    • THE MASSIVE METEORA STIMULUS PACKAGE
      • Overview
      • 1. Dynamic Liquidity Market Maker (DLMM)
      • 2. Formation Of An LP Army DAO
      • 3. The 10% Stimulus Proposal
  • USER FAQ
    • Getting Started LPing
      • Supported Wallets
      • Prepare SOL
      • SOL required for Rent
      • What is Wrapped SOL?
      • What is an AMM?
      • What does it mean to provide liquidity?
      • How to swap to the tokens required for adding liquidity to a pool
      • How to quickly check if a token has any risks
      • Viewing your transaction history
      • My wallet has been compromised. What should I do?
    • Differences between DLMM and Dynamic Pools
    • DLMM FAQ
    • Dynamic AMM FAQ
      • How is the pool price of the token calculated in a Dynamic AMM?
      • What is a Meteora LP token?
      • How do I see fees earned on a Dynamic AMM Pool?
      • How to track your earnings for a Dynamic Pool?
      • What is Virtual Price in a Dynamic Pool?
      • How do LP tokens, fees, and virtual price work for Dynamic Pools?
      • Why must I add liquidity in non-stable Dynamic Pools using a 50:50 value ratio?
      • What is AMP in a Dynamic Pool with stable coins?
      • Why is the USDT-USDC pool not 1:1 in ratio of assets?
      • Can I create an LST, FX, or Multi-token pool using the Dynamic Pool creation tool?
    • Alpha Vault FAQ
    • Why is the token sometimes not picked up and tradable on Jupiter?
    • How do I create a new farm?
    • Video Tutorials to Get Started
      • LP Army Boot Camp
      • DLMM Strategy Sessions / Jam Sessions
  • Security and Risks
    • Risk of Impermanent Loss (IL)
    • Risk of depositing into an imbalanced pool / pool with price out of sync
    • Smart contract risk
    • Risk of a stablecoin depeg
    • Operational risk for dynamic vaults and pools
    • Lending risk for dynamic vaults and pools
  • legal
    • Terms of Service
    • Stake2Earn Terms of Service
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On this page
  • Summary
  • Key Features
  • SPL and Token 2022 support
  • Concentrated Liquidity
  • Position NFT
  • Dynamic Fee
  • LP Fee Scheduler
  • LP Fee Collection Mode
  • Lock Liquidity Options
  • Built-in Farming mechanism
  • No Dynamic Vault integration
  • DAMM v2 Integration
  1. PRODUCT OVERVIEW
  2. Meteora Liquidity Pools

DAMM v2 Overview

Summary

Dynamic AMM v2 (DAMM v2) is a brand new constant-product AMM program for liquidity pools, with a set of features to optimize transaction fees and provide greater flexibility for liquidity providers, launchpads, and token launches.

Note: DAMM v2 is a new program, and not an upgrade of the Dynamic AMM v1 program.

Key Features

DAMM v2 would come with the following features:

  • More token support: SPL and Token 2022

  • Concentrated liquidity: Partial concentration of liquidity for higher capital efficiency, within a configured min-max price range

  • Position NFT: Liquidity position is not represented by an LP Token, but by a position NFT

  • Dynamic Fee: Option of Fixed Base Fee only or Dynamic Fee, which helps maximize returns during periods of higher volatility

  • LP Fee Scheduler: Option of an On-chain Fee scheduler where LP fee drops over time (linearly or exponentially), as an anti-sniper mechanism

  • New LP Fee claiming mechanism: LP Fee no longer auto-compounds into the pool liquidity. Can be claimed separately from liquidity withdrawal. This allows the building of additional features into the fee distribution system

  • LP Fee collection mode: Ability to select your preferred token for LP fee collection; Base + Quote or Quote token only

  • Lock liquidity options: Option to lock liquidity with vesting (non-permanent lock) or permanently lock liquidity, while still providing the ability to claim fees

  • Built-in Farming mechanism: Built-in farming within the program, not a separate Farm program

  • No Dynamic Vault integration: DAMM v2 would not be integrated with Dynamic Vaults to lend tokens to external lending protocols

SPL and Token 2022 support

Users can create pools or add liquidity for tokens that support both SPL and Token 2022 (Transfer Fee, Metadata, MetadataPointer extensions).

All Token 2022 tokens with Metadata pointer, and transfer fee extensions are supported permissionlessly. Token mints with other extensions can be whitelisted by Meteora's admin.

Concentrated Liquidity

DAMM v2 is a constant product pool but still enables pool creators to partially concentrate liquidity using a slightly tighter price range for higher capital efficiency. Once the pool is created, LPs that enter the pool would not be able to adjust the price range. This feature combines the benefits of a constant product AMM with the concentrated liquidity feature of a CLMM.

Position NFT

Liquidity position is not represented by an LP Token, but by a position NFT. This position NFT can be transferred to another wallet address.

Dynamic Fee

Pool creator has the option of choosing a Fixed Base Fee only or Dynamic Fee, which is Base Fee + Variable Fee based on price volatility.

Dynamic Fee helps maximize returns for LPs during periods of higher volatility.

Dynamic Fee Calculation

  • dynamic_fee_numerator = ((volatilityAccumulator*binStep)^2 * variableFeeControl + 99_999_999_999) / 100_000_000_000

  • dynamic_fee_percent = (dynamic_fee_numerator / 1_000_000_000) * 100

By default

  • binStep = 1

  • variableFeeControl = 2_000_000

  • volatilityAccumulator is the value inside program and storage in poolState.

LP Fee Scheduler

Pool creator has the option of using an On-chain Fee Scheduler, where LP Fees can drop over time (linearly or exponentially). This acts as an anti-sniper mechanism as you can set higher fees at the very start of the token launch.

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)

Linear Fee Scheduler Example

Exponential Fee Scheduler Example

New LP Fee Claiming mechanism

LP Fee no longer auto-compounds into the pool liquidity. Can be claimed separately from liquidity withdrawal. This allows the building of additional features into the fee distribution system. For example, enabling the claiming of LP Fee in a preferred token (e.g. SOL or USDC), or locking liquidity position permanently but still allow fees to be claimed.

LP Fee Collection Mode

Pool creator has the ability to select your preferred token for LP Fee Collection: Base + Quote or Quote token only.

Regarding how DAMM 2 collects fee only using the Quote token ("Token B"):

  • If a user swaps from A -> B, fee is charged on B; protocol takes some of the user's B

  • If a user swaps from B -> A, fee is charged on B before the swap is calculated; protocol takes some of the user's B before it gets swapped to A

Lock Liquidity Options

Pool creator has the option to lock liquidity with vesting (non-permanent lock) or permanently lock liquidity.

Built-in Farming mechanism

There is now built-in farming within the program, not using a separate Farm program like in Dynamic AMM v1.

No Dynamic Vault integration

DAMM v2 would not be integrated with Dynamic Vaults to lend tokens to external lending protocols. Each pool now includes a set of unique accounts for swap instruction; there are no more hot accounts or shared accounts between 2 pools, which optimizes the Compute Unit (CU) and transaction fees required.

DAMM v2 Integration

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DAMM v2 SDK