What Is Meteora DLMM?
A Dynamic Liquidity Market Maker on Solana using discrete price bins for concentrated liquidity.
Definition
Meteora's DLMM holds liquidity in discrete price bins instead of along a continuous curve. Providers put capital in the ranges they care about, which buys tighter spreads than a standard AMM for the same money.
How it works
Each bin is liquidity at one fixed price. Trades consume bins outward from the current price, so anything small clears with almost no slippage and impact only shows up once the nearby bins run out.
In Continuum
Continuum's L/S tokens started out in Meteora DLMM pools. They now trade on the protocol's own native bin book, a long pool and a short pool per market, quoted at NAV by the keeper, so Meteora is no longer a venue here. The design is still worth understanding, since the bin book belongs to the same family.
Related terms
Buy the same thing cheaply in one market, sell it dearly in another, keep the difference.
Atomic transaction bundles on Solana that protect against MEV frontrunning.
A token that gains value when the underlying asset price increases.
A token that gains value when the underlying asset price decreases.
More defi terms
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