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 (A.S.S.)
    • Meteora’s Anti-Sniper Suite
      • Dynamic Fees
      • Fee Scheduler
      • Alpha Vault
  • 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
      • DBC Scripts
      • Program Repo
      • Launchpad Template
      • 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
  • Adding liquidity with one address but allowing a different address to claim fees on the permanently locked liquidity
  • How do you identify a user's lock token account to transfer the LP token there?
  • If I have 100 LP tokens, can I send 1 token to 100 different lock accounts?
  • How to verify the fee owner for the fees from perma-locked liquidity in the Dynamic AMM pool?
  • How are claimable fees calculated from perma-locked liquidity in Dynamic AMM Pools?
  1. PRODUCT OVERVIEW
  2. Meteora Liquidity Pools
  3. Dynamic AMM Overview

Claiming Fees from Permanently Locked Liquidity

PreviousCreating a Dynamic AMM Pool via the UINextDynamic AMM Stable Pools

Last updated 7 months ago

If you are a memecoin or token project that wants to assure traders and your community, you can permanently lock your liquidity (your lose this liquidity forever) in your dynamic pool.

Simply navigate to the "Burn" tab and lock your Meteora LP token in the pool.

After you permanently lock liquidity in the dynamic pool, you can even claim compounding trading fees from your locked liquidity, forever!

Adding liquidity with one address but allowing a different address to claim fees on the permanently locked liquidity

For developers, our Dynamic AMM program allows one address to add liquidity first then send their own Meteora LP token to a different lock token account, so that the ability to claim fees goes to another user's address.

For example, User A deposits liquidity, gets an LP token and permanently sends it to User B's lock token account, so that User B gets to claim the fees forever (not User A).

How do you identify a user's lock token account to transfer the LP token there?

If I have 100 LP tokens, can I send 1 token to 100 different lock accounts?

Yes.

How to verify the fee owner for the fees from perma-locked liquidity in the Dynamic AMM pool?

  • Go to the LP mint address on solscan

  • Under Holders, select the holder account (not the token account)

  • Click Data tab

  • Under LockEscrow - JSON, search for owner field and view the address

How are claimable fees calculated from perma-locked liquidity in Dynamic AMM Pools?

We have a merchanism to slowly release locked LP tokens. In Dynamic AMM, fee is compound in LP tokens, so when there are swaps, value of LP token increases.

We use virtual price to define the LP token value:

Virtual price = invariant_d / lp_supply = sqrt(a * b) / lp_supply

Each time a swap occurs, invariant_d (or a * b) will be increased, so the value of LP token increases, and we use that increase in the value of LP token to calculate the fee for user.

Example:

When a user locks LP tokens, we will monitor the virtual price of LP token as v1.

When user claims fee, LP virtual price increases to v2.

That is equal to the fee user should get = total_locked_lp * (v2 - v1)

When translated to LP tokens at this time, we can calculate the amount of LP user can withdraw = total_locked_lp * (v2 - v1) / v2

If the user locks A0 lp_token at the time virtual_price = p0

  • Then the invariant is maintained as: Ai * pi = A0 * P0 = constant

  • Because pi is increased overtime, so user will be able to withdraw delta_A lp token over time to maintain this invariant

Use this example:

https://github.com/mercurial-finance/mercurial-dynamic-amm-sdk/blob/master/ts-client/src/examples/create_pool_and_lock_liquidity.ts#L110