Introduction to DAMM

Overview

Dynamic Automated Market Maker (DAMM) represents an evolution in AMM architecture, dynamically adjusting pricing and liquidity strategies based on real-time market conditions. This adaptive approach optimizes capital efficiency, minimizes slippage, and protects liquidity providers—surpassing traditional static AMMs that operate on fixed formulas like x*y=k. DAMM incorporates intelligent mechanisms that align pool prices during volatility, reducing arbitrage exploitation while enhancing trading efficiency.

Core Features

Dynamic Fee System

Fixed base fees with volatility-responsive dynamic components—currently capped at 20%, expanding to 90%. This mechanism amplifies LP returns during high-volatility periods through automated fee scaling.

Anti-Bot Protection

On-chain fee scheduling initiates with elevated fees that decay over time (linear or exponential), protecting launches from sniper bots. Schedules operate via Unix timestamps or blockchain slots.

Hybrid Concentrated Liquidity

Partial concentration model combining CLMM capital efficiency with constant-product simplicity (x*y=k). Pool creators define fixed price ranges at deployment—concentrating liquidity for optimal execution while maintaining protocol elegance. Post-deployment range adjustments are disabled, balancing efficiency with operational simplicity.

Liquidity Management

• Permanent Locks: Locked liquidity represented as tradeable NFTs, enabling tokenization and integration with staking/governance systems

• Vesting Schedules: Time-locked liquidity with programmable release mechanisms

• Single-Sided Provisioning: Bootstrap pools using single tokens, reducing launch barriers

Optimal Use Cases

DAMM architecture serves:

• LPs pursuing enhanced yields through dynamic optimization

• Projects requiring robust launch infrastructure

• Launchpads building sustainable liquidity frameworks

The combination of anti-sniper mechanisms and single-token initialization positions DAMM as the premier solution for memecoin and emerging token deployments—delivering professional-grade infrastructure for high-velocity markets.