DAMM v2 vs DLMM at a glance
DLMM stands for Dynamic Liquidity Market Maker. DAMM stands for Dynamic Automated Market Maker.
| DLMM | DAMM v2 | |
|---|---|---|
| Pool type | Liquidity in separate price bins | Constant-product AMM (x*y=k) |
| Who sets the range | You, per position | Pool creator, when the pool is created |
| Liquidity shape | Spot, Curve or Bid-Ask | Even across the pool’s range |
| Range size | Starts at 70 bins, can go up to 1,400 | Most pools made on Meteora’s site run 0 to infinity |
| Fees | Base fee plus variable (volatility) fee | Scheduled base fee (time or market cap) plus optional dynamic fee |
| Protocol / LP split | 10% / 90% on standard pools | 20% / 80% on all pools |
| Position | Position account you manage | Position NFT you can transfer or split |
| Cost to open | About 0.059 SOL refundable rent per position, plus about 0.075 SOL non-refundable per new bin array if you’re first | No separate figure in Meteora’s docs; the app shows the SOL needed before you confirm |
| Effort | High: you rebalance and close yourself | Low: deposit and leave it |
| Referral rebate (RAZZAER) | Eligible SOL and USDC quote pools | Not eligible, per launch reporting |
Sources: Meteora’s DLMM, DAMM v2, getting-started and protocol revenue docs, checked 6 October 2026. Referral eligibility as reported at the 20 July 2026 launch (more on that below).
My short take: if you want to actively farm fees on volatile coins and you’ll actually watch your positions, DLMM is the tool. If you want to deposit into a pool you believe in and mostly leave it, or you’re LPing a token that just graduated from a launch curve, DAMM v2 is simpler. Just know that “simple” also means you hand the range and the fees to whoever made the pool.
What is Meteora DAMM v2?
Meteora DAMM v2 (Dynamic Automated Market Maker v2) is a constant-product AMM. Meteora’s docs homepage describes it as having “position NFTs, optional concentrated ranges, and built-in anti-sniper suite”. If you’ve never used a classic x*y=k pool, here’s how constant-product pools work in plain English.
On charting sites and in trading bots you’ll often see DAMM v2 pools tagged DYN2 (and DAMM v1 pools tagged DYN). Same product, different label.
Three things in the DAMM v2 docs actually change how you LP:
1. The pool creator picks the range. A pool is either concentrated (a fixed min and max price) or compounding (full range). Meteora’s concentrated liquidity page says it plainly: “DAMM v2 positions do not choose independent per-position ranges.” The range is set when the pool is created. In practice, you’re accepting someone else’s range. If price leaves a concentrated pool’s range, nobody’s position earns until it comes back.
2. Your position is an NFT, and it can be locked. Transfer the NFT and you transfer the liquidity. Positions can be split. A position can hold unlocked, vesting and permanently locked liquidity, and locked liquidity still earns fees. That’s handy for projects locking LP. For you, it means checking what’s locked before you buy or receive a position from someone else.
3. Compounding mode only compounds part of the fee. In compounding pools, a share of the LP fee set by the pool (compounding_fee_bps) goes back into the reserves, and the rest stays claimable on your position. Meteora’s example: at 2,500 bps, 25% of LP fees compound and 75% remain claimable. Compounding grows the position on its own, but it also makes it harder to see what the pool actually paid you, since part of the fee is sitting inside the liquidity.
A pool can also pay up to two reward tokens straight to LPs with no separate farm, and common Token 2022 extensions are supported.
Where DAMM v2 pools come from
This is why you see so many DAMM v2 pools on new coins. Meteora’s Dynamic Bonding Curve (DBC) docs say new DBC configs and new pools migrate to DAMM v2, DAMM v1 migration is deprecated, and Token 2022 launches have to use DAMM v2. DBC also requires at least 10% of liquidity to stay locked at day 1 after migration.
So a coin that launches on a launchpad built on Meteora’s curve usually gets a DAMM v2 pool as its first real pool. Most of the big memecoin launchpads run their own curves instead; our launchpad comparison covers those.
How DAMM v2 fees work: the fee scheduler
On DAMM v2 the pool creator sets the fees, and you don’t get a say. Per Meteora’s fee docs, there are two scheduler types for the base fee.
Time scheduler
The fee is either fixed or decays over time on a linear or exponential curve. On a fresh launch this is the anti-sniper tool: fees start very high and fall as time passes.
Market-cap scheduler
The fee falls as price rises above the starting price, again on a linear or exponential curve.
Dynamic fee
An optional layer on top of the base fee. It rises when recent volatility rises, the same idea as DLMM’s variable fee.
Limits and how you get paid
- The minimum fee is 1 bps. Current pools cap the total fee at 99% (older version 0 pools cap at 50%).
- The rate limiter mode is deprecated for new configs. Old pools that use it still work.
- Fees are collected in one of three modes: both tokens, quote token only, or compounding. In every mode, the claimable part builds up on your position and you claim it yourself. In compounding mode, only the share that isn’t compounded is claimable.
What this means if you LP a launch: the early fee rate can be huge, and that’s where most of the fee income on a new pool comes from. It also falls fast by design. Check the pool’s current fee and scheduler on its page before you deposit, and don’t plan around the rate you saw in the first minutes.
How DLMM is different
DLMM (Dynamic Liquidity Market Maker) splits liquidity into price bins. Only the active bin trades, and each bin trades at a fixed price. The bin step (up to 400 basis points, per Meteora’s docs) sets the gap between bins.
The big difference is that you choose everything:
- Your range. Positions start at 70 bins and can stretch to up to 1,400 bins.
- Your shape. Spot spreads liquidity evenly, Curve bunches it near the price, and Bid-Ask puts more at the edges.
- Your side. You can go one-sided, for example SOL only below the current price.
That control is why I use DLMM. On a risky coin I can go very wide so a dump doesn’t wipe me out, or go narrower for a quicker play once volume picks up. Wide ranges can keep earning fees through a big drop, and a tight spot range can fall straight out the bottom for a loss. My results on X show both. Nobody closes a DLMM position for you, so have a plan for when you get out before you open it.
New to bins? Start with our DLMM beginners guide. For actual setups, see our Meteora LP strategies or the anti-sawtooth bid-ask setup.
DAMM v2 takes most of those choices away. Great if you don’t have time to manage positions. Frustrating if you want your liquidity sitting where the volume is.
DLMM vs DAMM v2 fee split: how much the LP keeps
From Meteora’s protocol revenue page, checked 6 October 2026:
| Pool | Protocol share | LP share |
|---|---|---|
| DLMM standard pool | 10% | 90% |
| DLMM launch pool | 20% | 80% |
| DLMM limit orders | 50% | 50% (to the order owner) |
| DAMM v2 (standard and launch) | 20% | 80% |
| DAMM v1 stable swap (legacy) | 0% | 100% |
For the same fee rate and volume, a standard DLMM pool gives the LP 90% and DAMM v2 gives 80%. On DAMM v2, a referral takes 20% of the protocol side when a referral account is used. Referral and host fees come out of the protocol’s cut, so they never add to what the swapper pays.
The split is only half the picture. A DAMM v2 launch pool with a high scheduled fee can earn far more than a low-fee DLMM pool. Compare the fee rate and volume of the actual pools in front of you.
When to use DLMM vs DAMM v2
DLMM makes more sense if you:
– want to choose your own range and shape
– LP volatile memecoins and plan to close and re-open often
– want to go one-sided (SOL only, or token only)
– want the referral rebate (DLMM only, see below)
DAMM v2 makes more sense if you:
– want a hands-off position on a pair you’re happy to hold for a while
– want the high early fees on a freshly migrated launch pool, and accept the rug risk that comes with them
– want a position you can lock, transfer or split as an NFT
– are in a pool that pays extra reward tokens
If you like DLMM’s fee share but not the babysitting, look at copy-trading tools for Meteora LPs instead.
On the same token, check both pools. The DLMM pool and the DAMM v2 pool for one coin often have very different TVL, volume and fee rates. Compare fees earned against TVL; the product name tells you nothing. Here’s how to filter Meteora pools that way.
How to add liquidity to a Meteora DAMM v2 pool
These steps follow Meteora’s DAMM v2 user guide, checked 6 October 2026. You’ll need a Solana wallet with SOL for fees and rent (set one up first if you haven’t).
- Open the pool in the Meteora app and check its page: price range, current fee, fee scheduler and fee collection mode.
- Go to the Deposit tab. Enter an amount of the base or the quote token. The app works out the other side from the pool’s current ratio, so you need both tokens.
- Check the Deposit info box. It shows the estimated amount you’ll receive, the minimum received and the max slippage. Then click Deposit and approve in your wallet.
- Claim fees. The pool page shows “Fees from position”. Whatever the fee mode, the claimable part builds up there and you claim it yourself. In compounding pools, the compounded share is already in your liquidity and the rest still needs claiming.
- Withdraw. Go to the Withdraw tab, enter how much unlocked liquidity to remove, check the minimum received and click Withdraw. Locked liquidity stays where it is.
Before you deposit, look at the range on the pool page. Most pools made through Meteora’s site run from 0 to infinity, but pools created by code can have a narrow, fixed range. Once price leaves it, you stop earning.
What happened to Meteora Dynamic Vaults and DAMM v1?
Meteora Dynamic Vaults and DAMM v1 are both legacy products now, per Meteora’s docs.
- DAMM v1 pools were built on Dynamic Vaults. Each side of the pool was a vault position, and idle liquidity could be lent out for extra yield. Existing pools still run, but Meteora recommends DAMM v2 for anything new.
- Dynamic Vault is the old single-asset lending vault. The docs say JupLend is now the only lending strategy that’s actively supported. They also warn that withdrawals depend on the liquidity in the vault, or what can be pulled back from the strategy, at that moment.
If you still have an old DAMM v1 or vault position, check it in the Meteora app. If you don’t need it there, I’d withdraw. If the full amount won’t come out at once, that’s the liquidity risk the docs describe, so try a smaller amount.
DAMM v2 and DLMM risks
- Rugs on launch pools. High early fees on a new DAMM v2 pool exist because new coins are risky. A rug takes your token side to near zero.
- Locked liquidity. Anything locked or vesting can’t be withdrawn until it unlocks.
- Fixed ranges. On concentrated DAMM v2 pools you can’t move the range. Price leaves it, and you stop earning.
- Token 2022 transfer fees. Some tokens charge a fee every time they move. Keep size small on coins like that, whichever pool type you use.
- Impermanent loss. Both pools sell the token as it rises and buy it as it falls. Here’s how to keep impermanent loss in check.
- Smart contract risk. Both are audited programs, but no audit removes all risk.
The referral rebate only covers DLMM
This matters if you’re deciding where to put size. Meteora’s Referral Staking launched on 20 July 2026. According to Solana Compass’s report on the launch, it covers DLMM pools with SOL or USDC as the quote token, and excludes DAMM v2 pools, limit orders and blacklisted pools. Referees get 2% of the protocol fees from their own eligible DLMM positions. Meteora’s referral page has the current list of eligible pools, so check there before you rely on it.
I stake 40,000 MET and run the referral code RAZZAER. If you LP on eligible DLMM pools, that rebate comes on top of your fees. It does nothing for DAMM v2 positions. To add the code and see how the cycles work, follow our MET staking and referral walkthrough.
Where to go next
- I post my DLMM results, losses included, on X @RazzaeR.
- I break down LP strategies on YouTube @yieldhustler.
- Questions about either pool type? Ask in the DLMM chat on Telegram.
FAQ
Is DAMM v2 better than DLMM?
Neither is better for everyone. DLMM suits active LPs who want to choose their range and shape. DAMM v2 suits hands-off positions and freshly migrated launch pools with scheduled fees. On standard pools, DLMM gives LPs 90% of fees and DAMM v2 gives 80%, per Meteora’s protocol revenue docs.
What is the difference between DAMM v1 and DAMM v2?
DAMM v1 sat on top of Dynamic Vaults, so idle liquidity could be lent out. DAMM v2 is a plain constant-product pool with position NFTs, optional concentrated ranges and scheduled anti-sniper fees, and it doesn’t lend your tokens. Meteora’s docs list DAMM v1 as legacy and recommend DAMM v2 for new pools.
What is DYN2 on Meteora?
DYN2 is the label charting sites and trading bots often use for Meteora DAMM v2 pools. DYN usually means a DAMM v1 pool. They’re the same products under shorter names.
Can I choose my price range on a DAMM v2 pool?
No. The pool creator sets concentrated or compounding mode and the range when the pool is created, and positions can’t pick their own range. Most pools made on Meteora’s website run from 0 to infinity. If you want your own range, use DLMM.
What is the DAMM v2 fee scheduler?
It’s how a DAMM v2 pool sets its base fee. A time scheduler keeps the fee fixed or lowers it over time. A market-cap scheduler lowers it as price rises above the starting price. Both can be linear or exponential, and total fees are capped at 99% on current pools.
Is DAMM v2 cheaper to open than DLMM?
For DLMM, Meteora’s docs list about 0.059 SOL of refundable rent per position, plus about 0.075 SOL of non-refundable rent per bin array if you’re the first to create those bins. The docs don’t give a separate position cost for DAMM v2, so check the SOL breakdown in the app before you confirm.
Are Meteora Dynamic Vaults still supported?
They still exist but are legacy. Per Meteora’s docs, JupLend is the only lending strategy actively supported, and withdrawals depend on available liquidity at the time. If you hold an old vault or DAMM v1 position you don’t need, consider withdrawing.
Can you lose money on DAMM v2?
Yes. If the token dumps or rugs, your position loses value faster than fees can make it back. Locked liquidity can’t be pulled, and concentrated pools stop earning once price leaves the range. Only LP what you can afford to lose.
