Hi — it’s Soju again with another case study.
We built DAMM V2 not in isolation, but by talking to our partners, and building a product that resonates with them and solves their problems.
Let’s talk about DAMM V2, partnered with Pump.Science.
Pump.Science Requirements
When launching a token, the PS team looked out for:
- Max liquidity at launch — allowing users to trade in and out and facilitate volume
- FOMO and early activity — There should be an incentive to participate early rather than late
- Sniper-resistant mechanism — There should be no benefit participating via a bot compared to a UI
The team implemented a fee scheduler on their own bonding curve, to combine a low initial valuation ($5,000) with a high dynamic fee (99.9%) that drops over-time.
The PS team wanted to set up their graduation mechanism onto Meteora with a similar feature, and thus reached out to us for assistance on implementing it.
Compared to DAMM V1, the Pump.Science team had the following requests:
- Higher max cap for dynamic fees (DAMM V1 had 15%)
- Shorter periods for different fees (DAMM V1 needed 2–5mins for each period)
Building a Fully On-Chain Fee Scheduler
In DAMM V1, we were unable to implement these changes as the dynamic fee was governed off-chain with a set of safeguards on-chain:
- We set a max fee of 15% on-chain, so if the off-chain keeper was compromised the max it could set was 15%
- We required time for the
fetch account + checking + transaction finalizationprocess
Thus, to achieve the requirements of PS, we implemented a fully on-chain fee scheduler for DAMM V2:
This meant that it would be read from Solana Clock (timestamp/slot) to determine the fees, instead of relying on an off-chain keeper, thus nullifying the security risk + precision issue on the off-chain system.
Now, partners can set the fee scheduler down to the slot (400ms), and a much higher max fee of 50%.
We are launching DAMM V2 with a max fee of 50% as part of the rollout. Due to the removal of a keeper account with the ability to set fees, we believe we can allow the fees to go higher — up to 99%.
Experimentation First
Meteora’s goal is to empower our partners with the technology to experiment and build better launchpads. A key part of this is empowering their experimentation and not restrict them, and working very closely with them to improve.
As part of DAMM V2, we sought to remove the restrictions of the fee scheduler function, allowing teams like Pump.Science to experiment with more settings.
However, safety is still a key priority, and as such we have capped the fee to be 50% for now on DAMM V2. We will eventually expand the fee scheduler to go up to 99%, and empower more experimentation with it, when the DAMM V2 gets battle-tested a bit more.
Powering Launchpads with Meteora
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.
