Jonizhang

🚨 Meteora | DAMM V2 Strategy 🚨 The strategy where I made +118 SOL PnL in 45 days with an average deposit of just 0.4 SOL per position. (Also, when we exclude scammer wallets, I’m one of the top 5 wallets.) In this thread, I’ll share both theoretical insights and hands-on experiences about DAMM V2, the new product from Meteora that I’ve been deeply involved with since day one. This might turn into a pretty long thread, as I’ll be going into the behind-the-scenes details. I’ll break down the theoretical part more thoroughly in the next section. ➡️ WHAT IS IT? DAMM V2 stands for Dynamic Automated Market Maker V2. 🔹It’s Meteora’s new product — a program that offers many advantages for token launch teams and liquidity providers (LPs), thanks to several features I’ll explain shortly. 🔹It’s not an upgrade of DAMM V1, but a completely new system. 🔹Its goal is to provide a more flexible, low-cost, and high-yield liquidity provisioning experience. ➡️ HOW DOES IT WORK? 🔹Anti-Sniper Mechanism: The pool creator can start with a high swap fee (currently up to 50%) to prevent sniper bots during the token launch. This fee gradually decreases over time, either linearly or exponentially, depending on the chosen setting. This feature significantly reduces the risk of teams losing a large portion of their token supply to sniper bots and having a poorly executed launch. 🔹Each Position Is an NFT: Every position you open through DAMM V2 is represented as an NFT. You use this NFT to later close your position. Since the NFT is transferable, it makes liquidity ownership more flexible. 🔹Dynamic Swap Fee: Swap fees are dynamic and adjust based on the trading volume in the market, providing liquidity providers with additional earnings. 🔹Fee : You can earn fees either in SOL or USDC, or jointly in token and SOL. This feature allows LPs to potentially earn more in less trusted pairs. 🔹Fee Claim: You can claim the fees you’ve earned at any time, separately from your main position without touching the position itself. 🔹Low Fees: The cost of creating a pool or joining an existing one is significantly lower compared to DLMM. (Currently 0.012 SOL to create a pool + 0.01 SOL per position.) ➡️ HOW DO YOU EARN? In DAMM V2, LPs earn when a buyer makes a trade at a much worse price than the market — typically due to a high-fee pool, similar to a MEV-style "wick." Earnings can also come from someone selling to your pool far below the actual market price. This usually happens with snipers during fresh token launches who get caught by these pricing inefficiencies. 🔵 TOKEN SELECTION 🔹The priority is to find fresh tokens that are unlikely to rug. To do this, I use the Pulse tab on https://t.co/5PdcTdQpa2 to check newly migrated tokens. 🔸AGE: The token should have migrated within the last 30 minutes. After an hour, the fee yield drops from around 50% to about 20%. 🔸Market Cap: Coins over $200K gradually start opening DLMM pools, and since our losses increase when the coin price drops, I prefer to avoid them. Our strategy is to enter DAMM V2 pools within this range and stay there until DLMM pools fill up and the fee rates decrease if the trade works out. On Axiom, we can view the following data directly without opening a token’s page: 🔸 Top 10 Holders: Should be between 10% and 35% 🔸 Dev: If the dev holds tokens, I stay away 🔸 Sniper: Should be below 15% 🔸 Insiders: Should be below 15% 🔸 Bundle: Should be below 15% The reason I keep these percentages relatively high is because we're filtering from coins with around $100K market cap. Even with these ratios, there’s still a rug risk, but fewer plays. 🔸It’s better if the coin has an active Twitter page or community. 🔸The coin’s price should appear to have moved organically. If a token meets these criteria, I usually make an initial buy of 0.1 SOL to enter the DAMM V2 pool. You need to make this filtering decision within 20 to 30 seconds, because every second counts in DAMM V2 pools. 🔵Creating or Joining a Pool 🔹We’ve selected and bought our coin, now we need to either create a pool or join an existing one if it’s already open. 🔹If the settings of an open pool match what we’re looking for, it’s better for everyone to join that existing pool, it increases the chance of that pool working well. Having multiple pools for the same token is usually not ideal. 🔹To create a pool, go to the "Dynamic Pools V2" tab on Meteora and click the "Create Pool" button. Then select "Create V2 Pool" and choose "Memecoin" to proceed to the settings configuration screen. 🔸At the top, we select the base token the one we bought. Below that, in the quote token section, we choose SOL (or USDC if we prefer). Then it asks for the token’s price in SOL. After entering it, it requested 0.11 SOL for the 0.1 SOL worth of tokens I wanted to add so in total, it’ll ask for around 0.23 SOL. Settings Fee Tier: 6% Dynamic Fee: YES Fee Collection Token: Quote Fee Scheduler: YES Fee Scheduler Mode: Exponential These are the most profitable and commonly used settings. If there’s already an open pool, make sure its settings are similar to these before deciding to join. With these settings, the pool starts with a 50% swap fee, which decreases exponentially over time. After 1 hour → around 20% After 2 hours → permanently drops to a minimum of 6% This setup means the most profitable window is usually within the first 20–25 minutes. That’s why it’s best to catch tokens right after they launch and test early. 🔵GENERAL TACTICS & TIPS 🔹Distribute your risk wisely: Start by defining three different allocation sizes, so you can spread your risk across many tokens. (I personally go with 0.05 SOL, 0.10 SOL, and 0.2 SOL worth of tokens.) Keep in mind that Meteora also asks for a similar amount of SOL alongside the token amount. For tokens that only look good in terms of distribution and name, I buy 0.05 SOL worth under a 100k market cap. Including the SOL required to enter the pool, I end up risking around 0.12 SOL. For tokens that are more in line with the current meta and have an active Twitter/X presence, I go with 0.1–0.15 SOL. If the token seems to have a strong backing or known team, I try to enter the pool with 0.2–0.3 SOL worth of tokens. If I see that the pool is generating good fees and the price hasn’t pumped too much yet, I increase the position size up to 2x. 🔹When to exit: About 45 minutes after the pool is created, you should start looking for an exit point, since the swap fee will have dropped to around 20%. Also, as DLMM pools start to form, the trading volume in this pool is likely to decrease. I usually close my position once the market cap drops below 50k, trying to minimize my losses as much as possible. 🔹When do fees come in? We earn fees whenever someone trades through the pool we're in. Usually, when the token hits an all-time high (ATH), the pool’s price remains relatively cheap, attracting buyers to this pool as well. However, when the price is stable, trades need to be directed to this pool through MEV-like triggers—meaning someone accepts high slippage to buy or sell here. These MEV-style triggers are what actually generate most of our income. On the other hand, when the price drops sharply, sellers set high slippage to be able to sell, effectively selling their tokens to us at prices lower than the normal market price. The SOL we added to the pool goes to that buyer, and their tokens get added to the pool — through this process, we earn fees. 🔹How much profit can a position make with DAMMv2? Remember, as long as you can catch MEV in DAMMv2, you don’t need to enter positions with very large amounts. Take less risk and try to be in more tokens. As you can see in my wallet performance, I exit one of my two positions at a loss, but overall, a few big wins outweigh many losses and keep me in profit. With 0.1 SOL positions, I've repeatedly generated over 2 SOL in fees. 🔹Which pools are profitable? New pools are constantly being created for different tokens, and checking each one individually is quite difficult. For this, I use a site that shows open pools along with their TVL and collected fees. Since this site lists every token, it also includes scam coins it's up to us to distinguish between them. https://t.co/BbmI0bUPsV (@gm365) 🔹Which tokens have activity: On this site, I set my filters to age <30 minutes, market cap between 50k-300k, and only migrated tokens. The token we just selected, Ghostcat, is currently showing up here. https://t.co/wkE5xMCQRX (@WillFoxOnline) 🔹How can I check my PnL? On this site, if you paste your position closing transaction for DAMMv2 into the PnL section, you’ll see your PnL card. https://t.co/XUyue67ZOf (@AlekssRG and art @NaojNc ) 🔹DAMMv2 Wallet Performance Checker On this site, you can see your own wallet performance just like I shared at the beginning of the thread. It shows you your wallet’s total PnL, number of trades, and claimed fees in detail. Also, there is a leaderboard section on the site where you can see the top-performing wallets in DAMMv2. https://t.co/FWoe2efTy3 (@jayowtrades) 🔹 Follow the Right Channels Join the @MetturkDAO discord channel and try to keep up with the meta. I also try to answer questions in the MetturkDAO general chat as much as I can based on what I know. I often check the "degen-damm" channel on @met_lparmy’s discord. There’s a lot of alpha shared there, and it gives you the opportunity to track which tokens are generating fees. 🚨DAMM pools were quite quiet for about a week compared to before, but in the last couple of days, they seem to be picking up again. The pools’ profitability tends to fluctuate over time, so it’s important to move with the current flow. That’s all I have to share about DAMMv2 for now. I’m learning more and more every day, and I’ll try to prepare another guide in the future. Remember that DAMMv2 is significantly riskier compared to DLMM, so adjust the amount you’re willing to risk accordingly. Stay with @MeteoraAG 🔖 If you found this guide helpful: ❤️ Like 🔁 Retweet 💬 Drop your questions in the comments 📌 And don’t forget to bookmark it you’ll need it later!

skolmbeaghNFT's tweet photo. 🚨 Meteora | DAMM V2 Strategy 🚨

The strategy where I made +118 SOL PnL in 45 days with an average deposit of just 0.4 SOL per position.

(Also, when we exclude scammer wallets, I’m one of the top 5 wallets.)

In this thread, I’ll share both theoretical insights and hands-on experiences about DAMM V2, the new product from Meteora that I’ve been deeply involved with since day one. This might turn into a pretty long thread, as I’ll be going into the behind-the-scenes details. I’ll break down the theoretical part more thoroughly in the next section.

➡️ WHAT IS IT?

DAMM V2 stands for Dynamic Automated Market Maker V2.
🔹It’s Meteora’s new product — a program that offers many advantages for token launch teams and liquidity providers (LPs), thanks to several features I’ll explain shortly.
🔹It’s not an upgrade of DAMM V1, but a completely new system.
🔹Its goal is to provide a more flexible, low-cost, and high-yield liquidity provisioning experience.

➡️ HOW DOES IT WORK?

🔹Anti-Sniper Mechanism: The pool creator can start with a high swap fee (currently up to 50%) to prevent sniper bots during the token launch. This fee gradually decreases over time, either linearly or exponentially, depending on the chosen setting. This feature significantly reduces the risk of teams losing a large portion of their token supply to sniper bots and having a poorly executed launch.

🔹Each Position Is an NFT: Every position you open through DAMM V2 is represented as an NFT. You use this NFT to later close your position. Since the NFT is transferable, it makes liquidity ownership more flexible.

🔹Dynamic Swap Fee: Swap fees are dynamic and adjust based on the trading volume in the market, providing liquidity providers with additional earnings.

🔹Fee : You can earn fees either in SOL or USDC, or jointly in token and SOL. This feature allows LPs to potentially earn more in less trusted pairs.

🔹Fee Claim: You can claim the fees you’ve earned at any time, separately from your main position without touching the position itself.

🔹Low Fees: The cost of creating a pool or joining an existing one is significantly lower compared to DLMM.
(Currently 0.012 SOL to create a pool + 0.01 SOL per position.)

➡️ HOW DO YOU EARN?

In DAMM V2, LPs earn when a buyer makes a trade at a much worse price than the market — typically due to a high-fee pool, similar to a MEV-style "wick." Earnings can also come from someone selling to your pool far below the actual market price. This usually happens with snipers during fresh token launches who get caught by these pricing inefficiencies.

🔵 TOKEN SELECTION

🔹The priority is to find fresh tokens that are unlikely to rug. To do this, I use the Pulse tab on https://t.co/5PdcTdQpa2 to check newly migrated tokens.

🔸AGE: The token should have migrated within the last 30 minutes. After an hour, the fee yield drops from around 50% to about 20%.
🔸Market Cap: Coins over $200K gradually start opening DLMM pools, and since our losses increase when the coin price drops, I prefer to avoid them.
Our strategy is to enter DAMM V2 pools within this range and stay there until DLMM pools fill up and the fee rates decrease if the trade works out.

On Axiom, we can view the following data directly without opening a token’s page:

🔸 Top 10 Holders: Should be between 10% and 35%
🔸 Dev: If the dev holds tokens, I stay away
🔸 Sniper: Should be below 15%
🔸 Insiders: Should be below 15%
🔸 Bundle: Should be below 15%

The reason I keep these percentages relatively high is because we're filtering from coins with around $100K market cap. Even with these ratios, there’s still a rug risk, but fewer plays.

🔸It’s better if the coin has an active Twitter page or community.
🔸The coin’s price should appear to have moved organically.

If a token meets these criteria, I usually make an initial buy of 0.1 SOL to enter the DAMM V2 pool. You need to make this filtering decision within 20 to 30 seconds, because every second counts in DAMM V2 pools.

🔵Creating or Joining a Pool

🔹We’ve selected and bought our coin, now we need to either create a pool or join an existing one if it’s already open.

🔹If the settings of an open pool match what we’re looking for, it’s better for everyone to join that existing pool, it increases the chance of that pool working well. Having multiple pools for the same token is usually not ideal.

🔹To create a pool, go to the "Dynamic Pools V2" tab on Meteora and click the "Create Pool" button. Then select "Create V2 Pool" and choose "Memecoin" to proceed to the settings configuration screen.

🔸At the top, we select the base token the one we bought. Below that, in the quote token section, we choose SOL (or USDC if we prefer). Then it asks for the token’s price in SOL. After entering it, it requested 0.11 SOL for the 0.1 SOL worth of tokens I wanted to add so in total, it’ll ask for around 0.23 SOL.

Settings

Fee Tier: 6%
Dynamic Fee: YES
Fee Collection Token: Quote
Fee Scheduler: YES
Fee Scheduler Mode: Exponential

These are the most profitable and commonly used settings. If there’s already an open pool, make sure its settings are similar to these before deciding to join.

With these settings, the pool starts with a 50% swap fee, which decreases exponentially over time.

After 1 hour → around 20%
After 2 hours → permanently drops to a minimum of 6%

This setup means the most profitable window is usually within the first 20–25 minutes. That’s why it’s best to catch tokens right after they launch and test early.

🔵GENERAL TACTICS & TIPS

🔹Distribute your risk wisely:

Start by defining three different allocation sizes, so you can spread your risk across many tokens. (I personally go with 0.05 SOL, 0.10 SOL, and 0.2 SOL worth of tokens.) Keep in mind that Meteora also asks for a similar amount of SOL alongside the token amount.

For tokens that only look good in terms of distribution and name, I buy 0.05 SOL worth under a 100k market cap. Including the SOL required to enter the pool, I end up risking around 0.12 SOL.

For tokens that are more in line with the current meta and have an active Twitter/X presence, I go with 0.1–0.15 SOL.

If the token seems to have a strong backing or known team, I try to enter the pool with 0.2–0.3 SOL worth of tokens.

If I see that the pool is generating good fees and the price hasn’t pumped too much yet, I increase the position size up to 2x.

🔹When to exit:

About 45 minutes after the pool is created, you should start looking for an exit point, since the swap fee will have dropped to around 20%. Also, as DLMM pools start to form, the trading volume in this pool is likely to decrease.

I usually close my position once the market cap drops below 50k, trying to minimize my losses as much as possible.

🔹When do fees come in?

We earn fees whenever someone trades through the pool we're in. Usually, when the token hits an all-time high (ATH), the pool’s price remains relatively cheap, attracting buyers to this pool as well. However, when the price is stable, trades need to be directed to this pool through MEV-like triggers—meaning someone accepts high slippage to buy or sell here. These MEV-style triggers are what actually generate most of our income.

On the other hand, when the price drops sharply, sellers set high slippage to be able to sell, effectively selling their tokens to us at prices lower than the normal market price. The SOL we added to the pool goes to that buyer, and their tokens get added to the pool — through this process, we earn fees.

🔹How much profit can a position make with DAMMv2?

Remember, as long as you can catch MEV in DAMMv2, you don’t need to enter positions with very large amounts. Take less risk and try to be in more tokens.

As you can see in my wallet performance, I exit one of my two positions at a loss, but overall, a few big wins outweigh many losses and keep me in profit.

With 0.1 SOL positions, I've repeatedly generated over 2 SOL in fees.

🔹Which pools are profitable?

New pools are constantly being created for different tokens, and checking each one individually is quite difficult. For this, I use a site that shows open pools along with their TVL and collected fees. Since this site lists every token, it also includes scam coins it's up to us to distinguish between them.

https://t.co/BbmI0bUPsV (@gm365)

🔹Which tokens have activity:

On this site, I set my filters to age <30 minutes, market cap between 50k-300k, and only migrated tokens. The token we just selected, Ghostcat, is currently showing up here.

https://t.co/wkE5xMCQRX (@WillFoxOnline)

🔹How can I check my PnL?

On this site, if you paste your position closing transaction for DAMMv2 into the PnL section, you’ll see your PnL card.

https://t.co/XUyue67ZOf (@AlekssRG and art @NaojNc )

🔹DAMMv2 Wallet Performance Checker

On this site, you can see your own wallet performance just like I shared at the beginning of the thread. It shows you your wallet’s total PnL, number of trades, and claimed fees in detail.

Also, there is a leaderboard section on the site where you can see the top-performing wallets in DAMMv2.

https://t.co/FWoe2efTy3 (@jayowtrades)

🔹 Follow the Right Channels

Join the @MetturkDAO discord channel and try to keep up with the meta. I also try to answer questions in the MetturkDAO general chat as much as I can based on what I know.

I often check the "degen-damm" channel on @met_lparmy’s discord. There’s a lot of alpha shared there, and it gives you the opportunity to track which tokens are generating fees.

🚨DAMM pools were quite quiet for about a week compared to before, but in the last couple of days, they seem to be picking up again. The pools’ profitability tends to fluctuate over time, so it’s important to move with the current flow.

That’s all I have to share about DAMMv2 for now. I’m learning more and more every day, and I’ll try to prepare another guide in the future. Remember that DAMMv2 is significantly riskier compared to DLMM, so adjust the amount you’re willing to risk accordingly.

Stay with @MeteoraAG

🔖 If you found this guide helpful:
❤️ Like
🔁 Retweet
💬 Drop your questions in the comments
📌 And don’t forget to bookmark it you’ll need it later!

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Jonizhang @jlimnjz

about 1 year ago

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Jonizhang @jlimnjz

about 1 year ago

@JatevoId @MeteoraAG LFG

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about 1 year ago

@byreal_io 🚀🚀

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