What Is Meteora? How the Solana DEX's DLMM Pools and Fees Work

A DLMM pool splits the price range into bins, each covering one price. Only one bin is active at a time. A trade inside that bin fills at its fixed price, with no slippage. Larger trades use up the bin and move the price into the next one ². The bin step sets the gap between bins, up to 4% (400 basis points). Small steps suit stablecoin pairs and large steps suit volatile tokens ².

LPs choose where to place liquidity, using three preset "shapes" ²:

• Spot: spread evenly across a range.
• Curve: concentrated near the current price.
• Bid-Ask: weighted toward the edges, used for buying dips or selling into rallies.

Each swap pays a base fee plus a variable fee. The variable fee rises when trades cross many bins quickly and falls as markets calm ². The design pays LPs more in volatile markets. The trade-off is upkeep: if the price leaves your range, your position stops earning fees until it returns or you move it ². You also face the usual impermanent-loss risk of providing liquidity.

Traders pay the pool's trading fee. The pool creator sets the fee, so it varies by pool. Meteora takes a share of that fee, and LPs get the rest ⁴:

Source: Meteora protocol revenues page, accessed October 23, 2026 ⁴. Solana network fees are separate. Referral fees come out of Meteora's share, not the trader's ⁴.

The Dynamic Vault is a legacy product. You deposit one token, and the vault lends part of it to Solana lending markets to earn interest. You receive vault LP tokens that you later redeem for your share ⁵. The docs say JupLend is the strategy currently in use ⁵. An off-chain keeper called Hermes moves funds within approved strategies. Meteora takes a performance fee by minting vault shares to its fee account ⁵. Your risks are those of the vault program plus every lending market it uses.

You connect a Solana wallet to app.meteora.ag to swap or provide liquidity. No account is needed. The interface terms exclude anyone who lives in, is a citizen of, or is registered in the United States, China or the British Virgin Islands. Using a VPN to get around this is prohibited ⁷. Many token launches happen on Meteora, so pools for new tokens appear constantly. Anyone can create a pool, and a pool listing is not a check on the token. The 2025 LIBRA collapse, which used Meteora pools, showed how much launch tokens can be manipulated ¹².

The DLMM program has been audited by Offside Labs, OtterSec, Sec3, Zenith and Sherlock across several versions since early 2024 ⁸. Meteora runs a bug bounty through OOO Security ⁹. DefiLlama's only hack entry for Meteora is a January 2026 social-engineering scam, not a smart-contract exploit ¹⁰¹¹.

MET launched on October 23, 2025, with a fixed supply of 1 billion; 48% was in circulation at launch ⁶. Allocations include:

• 15% for holders of Mercurial, an earlier project tied to Meteora.
• 15% for an LP stimulus plan.
• 3% for Jupiter stakers.
• 18% for the team and 34% for a Meteora reserve, both vesting over 72 months ⁶.

The tokenomics page does not describe MET governance rights ⁶.

In February 2025, the LIBRA memecoin promoted by Argentina's president surged and collapsed. Its team had created liquidity pools on Meteora. Co-founder Ben Chow had earlier referred the launch firm Kelsier Ventures to other projects, including the MELANIA token. Chow said he and Meteora were not involved in LIBRA beyond "IT support." His resignation was announced on February 17, 2025. Meow, the founder of Jupiter and a Meteora co-founder, said no one at Jupiter or Meteora had committed insider trading. He also said an independent third party would investigate ¹².

A proposed class action in New York, Hurlock v. Kelsier Ventures, names Meteora, Chow and Kelsier among the defendants. It alleges fraud and racketeering over LIBRA, MELANIA and other tokens. These are allegations, not findings. As of October 2025 the case was ongoing ¹³.