DAMM v2 Case Study: elizaOS

We built Dynamic AMM v2 not in isolation — but by talking to our partners and building a product that resonates with them and addresses their needs.

Let’s talk about how we used DAMM v2 to develop an effective and sustainable fee distribution mechanism for elizaOS.

Requirements from the ElizaOS Team

The DAMM supports the ability to permanently lock liquidity and have the trading fees go to the deployer, or redistributed to the top 1,000 stakers of the token.

ElizaOS’s focus was to further innovate on top of the fee redistribution mechanism for locked liquidity:

• Allowing the frontend to supersede and change creator addresses
• Collecting 10% of fees via a separate platform address

Currently, the team implements this by wrapping Raydium’s fee distribution NFT with a separate program. We had to implement a similar NFT system to support ElizaOS’s use case.

Powering Innovation to Unlock New Opportunities

This new fee redistribution mechanism would allow them to unlock new opportunities for teams:

• Supporting community takeovers by reassigning the revenue stream to a new wallet
• Tokenizing the revenue stream to support speculation on future revenues and more
• Fractionalizing and distributing the revenue stream across more stakeholders

Our primary goal is to support experimentation and exploration by our partners — based on the ideas brought up by the elizaOS team, it made sense to support this use case.

Implementing NFT Transfer

DAMM v2 supports the ability to transfer the ownership over permanently locked liquidity with a NFT.

When permanently burning liquidity, you receive a NFT representing the ownership (ability to collect fees) on a permanently locked liquidity position.

Teams can then build on top of it by:

• Implementing their own program that divides it for different purposes, and governs the ownership of each section, to do complex logic such as dividing fees across a 10-man team with different roles and responsibilities
• Combining with a staking and voting program that allows you to modify the ownership via Governance vote, allowing for the firing of certain team members, or a full community turn-over
• Implementing a program that allows each NFT to be tokenized, and then offer that token to be tradable on Meteora, so users can buy it on Jupiter and hold it to earn trading fees.

We’re excited to see many more opportunities spawn from this, ultimately turning the trenches sustainable and profitable.

Interested in Getting Started?

We’re here to work closely with our partners to rapidly experiment and iterate towards an ideal launch meta, powered with Meteora.

Dynamic AMM v2 is open-source and available for all teams to build on: https://github.com/MeteoraAg/cp-amm

Expect us to crank out many more features and programs to accelerate this journey.

Reach out to us on Discord if you want to work closely with us to build a new meta.