Meteora has announced DLMM Pro, a new type of automated market maker (AMM) that integrates the functions of its DLMM, DAMM V2 systems, as well as the dynamic binding curve (DBC) system.
This new product is designed to provide token creators and liquidity providers with greater flexibility in the operation of fund pools. According to Meteora, DLMM Pro can reduce the cost of creating and configuring fund pools by ten times.
More control over liquidity
One of the design goals of DLMM Pro is to allow token creators to customize and save the liquidity distribution curve, rather than relying on fixed configurations.
creators can choose the width of the liquidity distribution and adjust the position shape according to their preferred strategies. The system also supports different activation types and fee collection modes.
This flexibility may be particularly important during the token issuance period, as the demand for liquidity can change rapidly as trading activity develops.
DLMM Pro also integrates the functions from DAMM V2 and DBC, including an anti-sniping mechanism, as well as additional control options surrounding how liquidity is activated.
Dynamic Fees and Issuance Control
This new AMM introduces dynamic fees that can respond to market fluctuations. For example, token creators can set higher fees at the initial stage of issuance and gradually reduce them over time. Meteora indicates that this approach provides another means of management for projects in the early stages of trading, as the volatility and transaction activity during this phase may be significantly different from the subsequent market environment.
The system also supports limit orders, adding another trading mechanism to the liquidity infrastructure. According to the announcement from Meteora, users can "shape" and "stretch" their liquidity positions, thereby adjusting how their liquidity functions in different price ranges.
LP position will become NFT
A significant change in DLMM Pro relates to the positions of liquidity providers. Each LP position will exist in the form of NFT, which gives this position a structure similar to that of assets, allowing users to transfer or manage it independently.
Users will be able to merge positions, set expiration periods, lock positions, or delegate them to other addresses. This may provide liquidity providers with greater flexibility in managing positions or allocating control to other wallets.
This structure based on NFT also creates more possibilities for projects that wish to incorporate liquid positions into broader token mechanisms or incentive systems.
Lower configuration costs
Meteora indicates that DLMM Pro will reduce the costs of creating a fund pool and other configurations by ten times. Lower infrastructure costs may make it easier for smaller token issuance projects to use this system, and also facilitate access for projects that wish to have greater control over liquidity configurations without incurring the same level of configuration expenses.
The combination of lower costs and more configurable liquidity mechanisms makes DLMM Pro an attempt by Meteora to integrate its existing multiple AMM functions into a single system.
A broader AMM toolkit
DLMM Pro integrates customizable liquidity curves, dynamic fees, issuance control, anti-sniping features, limit orders, as well as LP positions based on NFT.
Meteora has not launched a completely independent liquidity model; instead, it has integrated the capabilities of DLMM, DAMM V2, and DBC, while also increasing the level of customization available to users.
