Meteora Dynamic AMM — Program ID & Overview
Eo7WjKq67rjJQSZxS6z3YkapzY3eMj6Xy8X5EQVn5UaB Meteora Dynamic AMM (DAMM) is a constant-product AMM with dynamic fees and a liquidity vault system. Unlike traditional AMMs, DAMM automatically routes idle liquidity to lending protocols to earn additional yield for LPs.
Program ID
Eo7WjKq67rjJQSZxS6z3YkapzY3eMj6Xy8X5EQVn5UaB
How it works
DAMM pools work like standard x*y=k AMMs but with two additions:
- Dynamic fees: Trading fees adjust based on market volatility. Higher volatility increases fees to protect LPs from impermanent loss.
- Liquidity vaults: Idle reserves are deposited into lending protocols (Solend, Marginfi, Kamino) to earn additional yield. The pool retains enough liquidity to handle normal trading volume.
Pool reserves → [Vault allocation strategy]
├── Trading buffer (always available for swaps)
├── Solend deposit (earning lending yield)
├── Marginfi deposit (earning lending yield)
└── Kamino deposit (earning lending yield)Key instructions
| Instruction | Description |
|---|---|
Initialize | Creates a new DAMM pool |
AddLiquidity | Adds liquidity to the pool |
RemoveLiquidity | Removes liquidity and withdraws from vaults |
Swap | Executes a swap |
ClaimFee | Claims protocol fees |
Supported pool types
| Type | Description |
|---|---|
| Volatile | Standard constant-product for any token pair |
| Stable | Optimized curve for pegged assets (USDC/USDT, SOL/mSOL) |
| Memecoin | Pools with special curve for new token launches |
FAQ
What is the benefit of the vault system? LPs earn trading fees plus lending yield on idle capital. In low-volume pools, the lending yield can exceed trading fee income, making it more attractive than standard AMMs.
How are dynamic fees calculated? Fees are based on recent price volatility. The pool tracks short-term price variance and adjusts fees proportionally. Low-volatility periods have lower fees to attract volume; high-volatility periods have higher fees to protect LPs.
Is withdrawal instant? Most withdrawals are instant since the pool maintains a trading buffer. Large withdrawals may require recalling capital from lending protocols, which usually completes in the same transaction.
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