DLMM

DLMM stands for Dynamic Liquidity Market Maker and is a type of concentrated liquidity pool used in protocols like Meteora. Unlike traditional CLMMs with fixed fees, DLMM adjusts trading fees dynamically based on market conditions such as volatility and trading volume.

This approach allows liquidity providers to potentially earn more trading fees on their capital, while users benefit from optimized fee pricing depending on market activity. The combination of concentrated liquidity and dynamic fees makes DLMM an attractive model for balancing capital efficiency and risk management.