//Meteora DAMM V2
B-

Meteora DAMM V2

Risk Score 35/100·C+Value
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$30MTVL·$178MFDV·DEXWebsite →

Meteora DAMM V2 brings genuinely novel innovations to the Solana DEX landscape, particularly its dynamic fee system and anti-sniping mechanism. However, the extreme fee ranges (up to 50%) create adversarial dynamics during market stress, and the complete code rewrite introduces fresh smart contract risk. Best suited for Solana-native traders and LPs who understand the dynamic fee model, with extra caution warranted during volatile markets.

Risk Breakdown

Top Risks

1

DAMM V2's dynamic fee scheduler can charge up to 50% fees in volatile conditions — while this benefits LPs, it creates an adversarial trading environment where users may pay extreme fees during the exact moments they need to trade most urgently.

2

The LP Fee Scheduler anti-sniping mechanism gradually reduces fees after pool creation, creating a game-theoretic window where sophisticated bot operators can time entries to minimize fees while retail users pay premium rates.

3

Complete rewrite from V1 with new compute unit optimizations and account architecture means the entire codebase is less battle-tested than the predecessor, despite Meteora's overall platform maturity.

Frequently Asked Questions

Is Meteora DAMM V2 safe to use?
Meteora DAMM V2 receives a B- risk grade (35/100) from Hindenrank, where lower scores indicate lower risk. Meteora DAMM V2 brings genuinely novel innovations to the Solana DEX landscape, particularly its dynamic fee system and anti-sniping mechanism. However, the extreme fee ranges (up to 50%) create adversarial dynamics during market stress, and the complete code rewrite introduces fresh smart contract risk. Best suited for Solana-native traders and LPs who understand the dynamic fee model, with extra caution warranted during volatile markets. Meteora DAMM V2 is a decentralized exchange on Solana that uses a smart automated market maker to help people trade tokens. It features dynamic fees that adjust based on market conditions — earning more for liquidity providers during volatile times and less during calm periods. It is especially popular for Solana memecoin launches due to its anti-sniper fee mechanism that gradually reduces trading fees after a new token pool is created.
What are the main risks of using Meteora DAMM V2?
The key risks identified for Meteora DAMM V2 are: (1) Dynamic fees can reach up to 50% during volatile markets, meaning you could pay extreme swap costs exactly when you most need to trade (2) Completely rewritten codebase means less battle-testing compared to the previous version (3) Heavily used for memecoin launches, which are inherently high-risk and volatile (4) Shares the Mercurial Finance/FTX legacy with other Meteora products
What is Meteora DAMM V2's risk score breakdown?
Meteora DAMM V2 scores 35/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 6/20, Oracle Surface: 1/10, Documentation Gaps: 3/10, Track Record: 6/15, Scale Exposure: 5/10, Regulatory Risk: 2/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.
How does Meteora DAMM V2 compare to other DEX protocols?
Among 111 rated DEX protocols on Hindenrank, Meteora DAMM V2 ranks #59 by safety (lowest risk score = safest). Its 35/100 risk score and B- grade place it in the middle tier of DEX protocols.
Has Meteora DAMM V2 ever been hacked or exploited?
Meteora DAMM V2 scores 6/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.
Last scanned 2026-02-27

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