Meteora (MET) is a decentralized finance (DeFi) platform that works to improve how liquidity is handled on the Solana blockchain. By using adaptive tools like dynamic market makers and vaults that optimize yields, Meteora gives users and projects more effective and flexible options for trading and funding.
What Is Meteora?
Meteora is a liquidity system that acts as both a decentralized exchange (DEX) and infrastructure to support Solana’s DeFi projects. It first launched as Mercurial Finance in 2021, focusing mainly on stablecoin trading.
After rebranding in 2023, Meteora expanded its reach to include more kinds of assets and brought in new technologies. The platform is designed to solve common problems in DeFi, such as wasted capital, divided liquidity pools, high price impact during trades, and unfair advantages in token sales.
How Does Meteora Work?
Dynamic Liquidity Market Maker (DLMM)
One of Meteora’s key features is the DLMM, which splits liquidity into small "price sections" or “bins.” This means that liquidity providers (LPs) can place their tokens within price ranges where they expect trading activity.
Unlike older market makers that keep fees fixed, DLMM changes fees automatically. During volatile times, fees go up to help protect LPs from losses, and they go down when markets are stable to attract more trading.
Dynamic Automated Market Maker (DAMM)
DAMM takes the idea of AMMs further by allowing simpler liquidity provision options and adjustable fee levels. The newer DAMM version also includes protections against bots buying tokens unfairly during launches, making token sales fairer for regular users.
Dynamic vaults
Meteora’s vaults don’t let tokens sit idle. They automatically lend out unused assets to Solana lending protocols. A monitoring program watches the market and moves funds around to maximize earnings from both trading fees and lending interest.
Token launch tools
To ensure new tokens launch fairly, Meteora uses Alpha Vaults and Dynamic Bonding Curves. These features prevent bots from taking early control, lock liquidity for stability during launch, and adjust token prices depending on demand, helping create balanced and trustworthy token launches.
The MET Token
MET is Meteora’s native token and has multiple use cases:
Governance: MET holders can vote on changes, upgrades, and how fees or rewards are distributed.Staking and rewards: Users who stake MET earn rewards from trading fees and can get discounts on platform fees.Liquidity Incentives: MET tokens are used to encourage liquidity providers and support ecosystem growth.
The token was released through the “Phoenix Rising Plan,” which made 48% of all tokens available from the start, with the rest released gradually over time to support steady growth.
In November 2025, Meteora (MET) was listed for trading on Binance with the Seed Tag applied.
Ecosystem Integration
Meteora works closely with Solana projects like Jupiter for trade routing and Kamino or Solend for additional yield options. Its technical design is modular and built in Rust, making it easy for developers to integrate with or expand upon.
Things to Keep in Mind
Although Meteora brings new technology, there are some risks to consider:
Market fluctuations: Large amounts of tokens unlocked early might cause significant price swings.Smart contract risks: Higher complexity products and features are more likely to have bugs or vulnerabilities despite security audits.Dependence on Solana: Network slowdowns or outages on Solana could impact the platform’s performance.Governance participation: Effective decentralization depends on wide and active user involvement.
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