What Is Meteora DLMM?
A Dynamic Liquidity Market Maker on Solana using discrete price bins for concentrated liquidity.
Definition
Meteora's DLMM (Dynamic Liquidity Market Maker) organizes liquidity into discrete price bins rather than a continuous curve. Liquidity providers concentrate capital in specific price ranges, resulting in tighter spreads and better capital efficiency than standard AMMs.
How It Works
Each bin holds liquidity at a fixed price. When trades execute, they fill bins sequentially from the current price outward. This means trades near the current price experience minimal slippage, while price impact only increases significantly once nearby bins are exhausted.
In Continuum
Continuum originally listed L/S tokens in Meteora DLMM pools. It has since moved to its own native concentrated-liquidity (CLMM) pools — a long and a short pool per market, kept at NAV by the keeper — so Meteora is no longer a Continuum venue. Meteora DLMM remains a widely used Solana AMM design and useful background.
Related Terms
Profiting from price differences of the same asset across different markets.
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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