What is Meteora? Solana’s Rising DEX Overview
Meteora is a decentralized exchange (DEX) and liquidity protocol operating in the Solana blockchain that has emerged as a pillar of the rapidly evolving DeFi ecosystem. This document reviews Meteora's position in DeFi in 2025 for both DeFi users who are just getting started and veteran DeFi investors.
It is worth noting that Meteora acts as a liquidity layer on Solana's blockchain and is leveraging Solana's fast and cheap execution capabilities to enable yield amplification and engage in trading. We will cover what Meld crypto is, what a Token generation Event (TGE) is, the meter of the token TGE, as well as how Meteora is compared to similar platforms when compared to Jupiter Swap. We also recommend getting personally responsible and doing your own due diligence (DYOR) before you use these tools and products.
There are various tools that Meteora can deliver, like Dynamic Liquidity Market Maker (DLMM) pools, to help you fulfill your DeFi strategies. Solana's DeFi ecosystem is continuing to develop and Meteora plans to play some part in this expansion. By the end of this article, you will know what tools and products Meteora plans to have, and how to prepare for their TGE event. We also strongly recommend that you DYOR and follow your own interests, and participate with informed decisions.
What is Meteora?
Meteora is based on Solana's decentralized exchange (DEX) and liquidity protocol and launched in 2023 as a result of the rebranding of Mercurial Finance. It serves as a liquidity layer that powers projects like Jupiter Swap on the broader Solana DeFi ecosystem.
Defining a Liquidity Layer:
A liquidity layer pools the assets on-chain to facilitate token swaps. They provide users with the efficiency of Solana while allowing the user to keep control.
Meteora establishes liquidity pools in order to solve DEX issues, including slippage and fragmented liquidity. Meteora has two distinct pools, Dynamic Liquidity Market Maker (DLMM) and Dynamic AMM (DAMM), that not only create accurate, but realistic liquidity while allowing a competitive fee structure. DLMM provides a "price bin" route to minimize slippage and to utilize optimal fees during turbulent periods of volatility.
After successfully weathering the 2022 market downturn, Meteora is now the successor of Mercurial Finance, and as of September 2025, more than $1.1 billion worth of total value locked (TVL). Co-founded Ben Chow, Meteora has embedded itself into the number of top protocols on Solana.
Solana has near-zero gas fees, making it an excellent choice for Ethereum for high-frequency trading and memecoin launches. While Raydium or Orca don’t necessarily focus a DEX on LP (liquidity provider) profitability, Meteora does, effectively raising stablecoin or volatile assets from profitability and utilizing tooling such as Alpha Vaults to create as fair of launch as possible. Always do your own research (DYOR) before participating.
Meteora Token and Its Utility
The Meteora token, MET (sometimes referred to as DAMM), is the governance and utility token for the ecosystem. In anticipation of its TGE, MET seeks both to incentivize participation and to align the interests of the user base.
- Governance
MET holders can vote on protocol upgrades, fee structures, and emissions through the Meteora DAO. - Liquidity Incentives
MET rewards LPs in DLMM and DAMM pools, especially for new token launches. Season 2 points farming, active since July 2025, allows users to earn MET. - Fee Sharing and Staking
Staking MET provides a share of swap and lending fees. - Ecosystem Access
MET provides access to features like custom pools and Dynamic Vaults for different yield opportunities.
MET will have a fixed supply with 15% going towards airdropping to liquidity providers (LPs) and MERmaid NFT holders to ensure fair distribution to the airdrop participants. Fee burns are also utilized in the economic structure.
Learn more in our Academy: What is Staking?
Comparison Between Meteora and Jupiter Swap
Meteora and Jupiter Swap are key players in Solana’s DeFi ecosystem but serve different purposes. Jupiter is a DEX aggregator, routing trades across Meteora, Raydium, and others for optimal pricing. Meteora provides the underlying liquidity pools.
Here’s a comparison:
Meteora’s dynamic fee structure, which can be as high as 50% in volatile DAMM v2 pools, is advantageous to liquidity providers (LPs). Jupiter doesn’t charge fees and offers trading amenities such as perpetuals, making it easier for traders. The two products are complementary, as Meteora provides liquidity to Jupiter.
Meteora’s Liquidity Pools and Protocol Fees
The liquidity pools are the core of Meteora’s protocol and provide different options for the assets. Dynamic Liquidity Market Maker (DLMM) utilizes a bin-based system to provide concentrated liquidity. LPs deposit cash into price “bins” that ultimately create a price range, while also achieving low slippage and unstable fees as high as 15% during periods of volatility.
- DLMM Pools
A good fit for volatile pairs including memecoins. LPs have a number of strategies to consider (Spot or Curve), and the LP chooses how much to deposit into each bin, as well as the use of Jupiter for visibility. - Dynamic AMM (DAMM) pools
Traditional AMM, v2 with Token-2022 (and single-sided liquidity), fees between 0.15%-1%, with schedulers for launches. - Memecoin Pools
DAMM, auto-locking, dynamic fees, tracked by DEXScreener. - Dynamic Vaults
Auto-rebalance liquidity across lending protocols like Kamino, potential 10% APY on stables.
Fees are split 80-90% to LPs and 10-20% to treasury/MET stakers, with a 5% protocol fee on DLMM pools introduced in 2025. Explore pools via the Meteora platform. DYOR to assess pool risks.
The $MET Token Generation Event (TGE): What will you see from the TGE?
On September 10, 2025, Meteora has a recent post on X (@MeteoraAG) confirming the $MET TGE aimed for October 2025. After months/months of prep work like points systems and infrastructure scaling, as outlined through the thread.
- Distribution of tokens: 15% of MET will be airdrop to LPs and stakers based on Season 2 points (agreed- started July 2025). Next, 25% of MET is allocated for liquidity rewards (20%) and TGE grounds reserves (5%) to keep things stable post-launch. For the DAO, the goal is to launch and scale without venture capital allocations.
- Timeline: Season 2 points farming will be done, and snapshot will be taken before the October 2025 TGE. Once complete, users will be able to claim, out of the MET pool post-TGE, and participate in governance and fee sharing. Jump in and join high-volume pools like
- Considerations: While the TGE may impact Meteora’s ecosystem and the state of the market may be very different, stay tuned to Meteora’s official X (formerly Twitter) account (@MeteoraAG), and Meteora’s Blog, and do your own research (DYOR) if you want to participate.
Security and Controversies Surrounding Meteora
Meteora has security first with audited contracts and bot prevention in the form of an Alpha Vault. DLMM and DAMM v2 significantly curb a community's vulnerabilities such as hot accounts, and reduce risk when launching a project.
While Meteora faced controversy in 2025 with regard to the launching of memecoins such as M3M3 and LIBRA about how they had been managed, and there was concern about the X account of one of their hacks - meteora's security and transparency are apparent through on-chain audits.
Always DYOR to understand risks!
Future Developments and the Meteora Metaverse
Meteora is working on advanced vaults and developer SDKs, and in 2026 may include VR/AR interface options for pool management, based on Web3 technologies.
Plans include multi-chain support and AI-based yields - it may even support GameFi and NFT's.
Read more in our Academy: DeFi: Explained
FAQ
What is Meteora?
Meteora is a Solana-based DEX and liquidity protocol with dynamic pools like DLMM for efficient trading and yields.
When is the Meteora TGE?
The MET TGE is targeted for October 2025, per Meteora’s X post.
How does Meteora differ from Jupiter Swap?
Meteora provides liquidity pools; Jupiter aggregates trades for optimal prices.
What are DLMM pools?
DLMM pools use bin-based liquidity for minimal slippage and dynamic fees.
Is Meteora safe?
Meteora has audited contracts but faced controversies; DYOR and use secure practices.
How to earn with Meteora?
Provide liquidity or stake for fees and MET airdrops. Always DYOR.
Conclusion
Meteora has established itself as a significant player in the Solana DeFi landscape. The Meteora team has developed some unique liquidity pools and opportunities for LPs. The first TGE for Meteora is planned for October 2025, so it is project worth keeping an eye on. Be sure to check out Meteora's offering features and follow along on their offical channels. As always make sure you DYOR before getting involved!
