DAMM v2: Single-Sided Launch Pools
Deploying Single-Sided Liquidity on DAMM v2 — written by 0xSoju
I’m excited today to share about one of the most unique features about DAMM v2:
The ability to specify the initial/minimum price and the maximum price when initializing the pool.
The attractiveness of this feature came from the DLMM — single-sided DLMM launches are the most powerful way to launch on Solana today.
How can we bring this functionality to more teams?
By massively reducing the cost of creating a launch pool, and simplifying the process.
Introducing the Single-Sided DAMM v2 Launch Pool.
What Did We Cook?
When creating a regular CP-AMM pool, you put two tokens together in a LP token, and liquidity is distributed from 0 to infinity.
In DAMM v2, there is an optional parameter to specify a min/max price, and concentrate your liquidity. This is similar to concentrated liquidity positions, but occurs natively within the same program.
Thus — it can be said that DAMM v2 offers both constant product [0,Infinity] and Concentrated Liquidity [Min, Max] options.
Why We Built This
Many teams find it difficult to launch a DLMM Launch Pool for two reasons:
- It’s expensive to set up, and the cost scales with more launches.
- It’s confusing to understand — for both the launchpad and the average user.
DAMM v2 addresses this by simply:
- Reducing the amount of Solana state required to initialize a DAMM v2 pool, thus massively reducing the SOL rent cost involved in creating a DAMM v2 position compared to a DLMM pool.
- Relying on a constant math (xy = k) formula for liquidity between two points, removing the need for deep understanding of liquidity distribution (since it’s consistent with the xy = k formula).
Today, creating a single DAMM v2 pool + position costs 0.022 SOL, compared to an average of ~0.25 SOL for binArrays and Positions on the DLMM pool.
This represents a 90% reduction in pool creation costs.
That said, the DLMM is still super useful for customizing liquidity distribution, allowing for liquidity at every price point to be controlled, specified and engineered for maximum success.
Apart from concentrated liquidity and cost efficiency, DAMM v2 also comes with a plethora of other features:
- A much more efficient program which is CU-optimized and no longer involves hot accounts (able to handle scale / the next bull market much better)
- Dynamic Fees — which means that teams can earn trading fees from their launches, based on market volatility.
- Token2022 support
And much more, which can be found in the DAMM v2 Overview.
Partner: Jestr
We had the validation from launchpad partners like Jestr that we’re on the right track with Dynamic AMM v2.
DAMM v2 is super helpful as it simplifies the experience for our users. We found the DLMM to be a great way to bootstrap liquidity, but it was slightly confusing to the average user.
Reducing the costs for DAMM v2 was also helpful for our partners — the DLMM has a higher initial cost upfront due to the number of pools + positions we create.
Get Started with DAMM v2
Currently, creating pools with single-sided liquidity on DAMM v2 is only possible programmatically.
We’re currently progressively rolling out DAMM v2, with Jupiter integrations live and available on edge.meteora.ag.
When DAMM V2 is live on the main app (app.meteora.ag), all pools created will be viewable there as well.
If you’re interested in trying this out, create your first pool here: https://github.com/MeteoraAg/meteora-pool-setup/blob/main/config/create_damm_v2_customize_pool.json
