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
  • Liquidity Provider Fee
  • Protocol Fee
  • Base APY
  • 365d Yield/TVL
  • LM APR
  1. PRODUCT OVERVIEW
  2. Meteora Liquidity Pools
  3. Dynamic AMM Overview

Dynamic AMM LP Fee and APY Calculation

In order to enhance transparency for our LPs concerning the APY associated with their deposited assets, we compute and display various information, for example: Liquidity Provider Fee, Protocol Fee, 365d Yield/TVL, and LM rewards APR.

Liquidity Provider Fee

The amount of fees charged on each trade that goes to liquidity providers (LPs).

Protocol Fee

The amount of fees charged on each trade that goes to the protocol. Protocol Fee is a % of the LP Fee.

For our initial testing phase, Protocol Fee has been set as 20% of the LP Fee, for all volatile Dynamic AMM Pools.

Base APY

The base APY offered is subject to variation and is based on the prevailing trading activity and yield obtained from lending platforms. The calculation of APY is contingent on the increase in virtual price over a specific time period.

base APY=((Virtual Price 2Virtual Price 1)1 yeartimeframe−1)×100\text{base APY} = \left(\left(\frac{\text{Virtual Price }2}{\text{Virtual Price }1}\right)^{\frac{\text{1 year}}{\text{timeframe}}}-1\right) \times 100base APY=((Virtual Price 1Virtual Price 2​)timeframe1 year​−1)×100

Virtual Price 2: Latest Virtual Price value

Virtual Price 1: Previous Virtual Price value in the last 24 Hours

Timeframe: Time difference between Virtual Price 1 and 2 (in seconds)

Note: The Virtual Price represents the value of your pool share and is determined by dividing the pool's total value by the number of LP tokens (VP = pool_value / LP token). The pool's value rises as a result of a swap fee being charged on each trade or when assets deposited in lending pools generate lending yield. This increase in pool value corresponds to a rise in the Virtual Price.

365d Yield/TVL

The ratio of the aggregate swap fees accrued over a 1-year period to the total liquidity available in the pool represents the efficiency metric that informs LPs which pool generates the most trading fees. This data empowers LPs with valuable insights into pool performance.

1 year fee/TVL=24 hour fee×365Total Liquidity of pool\text{1 year fee/TVL} = \frac{\text{24 hour fee} \times 365}{\text{Total Liquidity of pool}}1 year fee/TVL=Total Liquidity of pool24 hour fee×365​

24 hour fee: Swap fee generated in the last 24 hour in $

Total Liquidity of pool: Total value of the assets stored in the AMM pool in $

LM APR

This refers to the APR that is calculated based on the rewards provided by the team or partner protocols through Liquidity Mining (LM), such as ABR, LDO rewards, etc.

LM APR=((1+Farm Reward per dayFarm TVL)365−1)×100\text{LM APR} = \left(\left(1 + \frac{\text{Farm Reward per day}}{\text{Farm TVL}}\right)^{365} - 1\right) \times 100LM APR=((1+Farm TVLFarm Reward per day​)365−1)×100

Farm reward per day: Token reward per day x token reward USD rate

Farm TVL: Pool LP staked/Pool LP supply x Pool TVL

Pool TVL: Pool token A x token A USD rate + Pool token B x token B USD rate

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Last updated 4 months ago