What is Meteora, How it Works, and Where to Buy MET
The Solana ecosystem has been buzzing, and at the center of that conversation is Meteora (MET), the protocol redefining how liquidity works on-chain. Formerly known as Mercurial Finance, Meteora has reintroduced itself as one of Solana’s most advanced liquidity layers, powering swaps, yield strategies, and token launches for a new generation of DeFi users. Its goal is ambitious yet clear: to build a secure, composable, and community-owned foundation for Solana’s decentralized economy.
What sets Meteora apart is its ability to evolve where others stagnate. While most automated market makers still rely on rigid fee structures and static pools, Meteora uses real-time data to adapt liquidity and pricing dynamically. The result is a fairer, faster, and more profitable environment for traders, liquidity providers, and new token projects alike.
With the MET token now live on XT Pre-market OTC and soon trading through MET/USDT pairs, all eyes are on whether Meteora can become the cornerstone of Solana’s next DeFi breakthrough.
TL;DR for Busy Readers
– Meteora (MET) is a next-generation liquidity protocol on Solana, combining dynamic AMMs, yield-optimizing vaults, and fair-launch tools.
– Rebranded from Mercurial Finance to rebuild trust after FTX and promote full community ownership.
– Key features: Dynamic fees that adapt to volatility, vaults that lend idle capital, and concentrated liquidity pools for higher efficiency.
– MET token: Powers governance, staking, and fee-sharing, with 48% of supply unlocked at launch via the Phoenix Rising Plan.
– Available now: Currently tradable on XT Pre-market OTC, with MET/USDT spot pair coming to XT.COM and Solana DEXs post-launch.
Table of Contents
How Meteora Works — The Core Mechanics
MET Tokenomics Explained — Inside the MET Economy
Meteora’s Use Cases & Ecosystem Applications
How to Buy MET — Ways to Participate
Meteora’s Competitive Edge — Why Meteora Stands Out
MET Token’s Key Risks and Challenges
What Is Meteora (MET)?
Meteora is a decentralized liquidity protocol built to make liquidity on Solana smarter, more efficient, and more rewarding. Acting as a core layer of Solana’s DeFi infrastructure, it powers trading, yield generation, and token launches for projects across the ecosystem.
The project began as Mercurial Finance, one of Solana’s earliest stablecoin AMMs. After the 2022 market downturn and the collapse of FTX, the team rebranded to Meteora to mark a clean break from the past and refocus on transparency, innovation, and community ownership. The shift also expanded its mission: from a narrow stablecoin exchange to a full liquidity engine that supports all asset types.
Meteora introduced breakthrough tools like the Dynamic Liquidity Market Maker (DLMM) and Dynamic AMM (DAMM), which automatically adjust fees and liquidity based on real-time market activity. This adaptive design increases capital efficiency, reduces slippage, and helps LPs earn more consistent returns.
At the center of the ecosystem is the MET token, which grants holders voting rights, fee-sharing opportunities, and influence over future protocol upgrades. By 2025, Meteora had become one of Solana’s busiest DeFi platforms, surpassing $1.18 billion in daily trading volume and more than $1.1 billion in total value locked.
Meteora Team, Backers, and Strategic Support
Meteora was founded by veteran DeFi builders behind Mercurial Finance, one of Solana’s first stablecoin DEXs. The team blends technical depth with a focus on community-driven growth.
– Zhen Hoe Yong (Co-founder, Project Lead): Leads Meteora’s development and strategy, emphasizing transparency and sustainable innovation.
– TRAV (CTO): Former Uniswap v3 and Curve contributor who designed Meteora’s DLMM and dynamic fee systems.
– ROOK (COO): Former investment banker managing operations, partnerships, and integrations with Solana protocols.
– Ben Chow (Co-founder, former CEO): Guided Meteora’s rebrand and Phoenix Rising Plan before stepping down in early 2025.
– 0xM (Advisor/Founder): Early contributor credited with shaping Meteora’s liquidity model.
Meteora collaborates closely with Jupiter Exchange and its co-founders Meow and Ben Chow, who provide ecosystem guidance. Supported by Coinbase Ventures, Jump Capital, and Solana Ventures, Meteora prioritizes decentralization with a “no equity, only $MET” launch model.
How Meteora Works — The Core Mechanics
Meteora stands out because it reimagines how automated market makers (AMMs) function. Instead of relying on static models, it built a dynamic system that adapts to real-time market conditions, improving capital efficiency and boosting rewards for liquidity providers (LPs).
1. Dynamic Liquidity Market Maker (DLMM)
DLMM is the foundation of Meteora’s ecosystem. Rather than spreading liquidity evenly like traditional AMMs, it uses a bin-based structure similar to Uniswap v3, optimized for Solana’s high throughput. LPs can choose custom price ranges, concentrating their liquidity where trades actually occur. What truly sets DLMM apart is its dynamic fee model. When volatility rises, trading fees increase automatically to offset impermanent loss. When the market calms, fees drop to attract more trading volume. This self-adjusting mechanism keeps liquidity active and LP returns steady.
Learn more: DLMM Launch Pool (Source: Meteora Docs)
2. Dynamic AMM (DAMM v2)
DAMM v2 enhances the classic AMM formula with modern upgrades. It supports single-sided liquidity, flexible fee tiers, and anti-bot protections for new token launches. By starting with higher fees and lowering them as the market stabilizes, DAMM v2 prevents sniper attacks and ensures fairer launches for emerging tokens.
Learn more: DAMM v2 Launch Pool (Source: Meteora Docs)
3. Dynamic Vaults
Idle liquidity doesn’t sit still on Meteora. Its vaults automatically lend unused assets to Solana lending platforms like Solend or Jet, generating extra yield. These vaults rebalance constantly, combining swap fees with lending interest for higher, more consistent returns.
Learn more: Alpha Vaults (Source: Meteora Docs)
4. Composability and Security
Meteora’s modular design allows seamless integration with other Solana apps. Platforms like Jupiter and Kamino already plug into its pools and vaults, extending its reach across DeFi. All contracts are written in Rust, audited by firms such as Zellic and Bramah Systems, and supported by a $500,000 Immunefi bounty.
MET Tokenomics Explained — Inside the MET Economy
The MET token is the backbone of Meteora’s ecosystem, powering governance, staking, and fee-sharing across the platform.
The Phoenix Rising Plan marked Meteora’s Liquidity Generation Event (LGE), designed to “turn everyone liquid.” Instead of a low-float, high-FDV launch, Meteora opted for full transparency and broad ownership from day one. The team committed to not selling any tokens at TGE, ensuring that value flowed directly to the community rather than insiders.
MET’s utility centers around three roles:
– Governance: Holders vote on protocol upgrades, fee parameters, and ecosystem partnerships.
– Staking & Fee Sharing: A portion of every swap fee (10–20 %) goes to MET stakers as rewards.
– Liquidity Incentives: The DAO can allocate reserve tokens to reward LPs or fund growth programs.
By eliminating token inflation and tying rewards directly to real platform activity, Meteora built a sustainable economy where token value reflects actual usage. As trading volume and fees increase, MET stakers share in the upside, aligning community incentives with the protocol’s long-term success.
Meteora’s Use Cases & Ecosystem Applications
Meteora serves as the liquidity backbone of the Solana DeFi ecosystem, providing the foundation that powers trading, yield generation, and token launches across the network.
1. Low-Slippage Swaps
Traders benefit from deep, efficient liquidity pools that keep spreads tight, even during volatile markets. Its stablecoin pools combine assets like USDC, USDT, and PAI to minimize slippage on large trades, delivering a smoother trading experience.
2. Yield Farming and LP Optimization
Liquidity providers can pair Meteora’s dynamic pools with external strategies on platforms such as Kamino. This setup allows them to compound rewards and maximize returns across multiple DeFi protocols without complex manual management.
Try for Yourself: Meteora Pools (Source: Meteora dApp)
3. Token Launch Infrastructure
Meteora’s Alpha Vault and Dynamic Bonding Curve tools create a fair environment for new token launches. These systems block sniper bots, permanently lock initial liquidity, and give genuine supporters early participation opportunities.
4. Composability Across Solana
The protocol integrates seamlessly with major Solana projects like Jupiter for trade routing, Hubble for lending, and Solend for extra yield. These connections turn Meteora into a flexible, plug-and-play liquidity engine that underpins the broader DeFi ecosystem.
Learn More: Meteora Ecosystem (Source: Meteora Launch Guide)
How to Buy MET — Ways to Participate
As of October 2025, there are several easy ways to get involved with the MET token, whether you prefer trading, earning, or holding long-term.
XT Exchange provides early trading access to MET through its Pre-market OTC platform. This feature lets users acquire MET before it’s fully listed, with transparent pricing and secure settlement.
Jump in: MET/USDT XT Pre-market OTC
2. MET/USDT Pair on XT.COM:
After launch, MET will become available for spot trading on XT.COM, where the MET/USDT spot pair serves as one of the main markets. It’s also accessible on Solana’s DEX aggregator Jupiter, which automatically finds the best price by routing trades through Meteora’s own pools.
3. Provide Liquidity:
Users can add liquidity to Meteora pools and earn MET rewards. LP tokens can also be staked or used as collateral on Solana lending platforms, offering multiple layers of yield.
4. Community Airdrops:
Early backers and holders of Mercurial’s MER token received part of the 48 percent community allocation under the Phoenix Rising Plan, rewarding loyalty and participation.
Meteora’s Competitive Edge — Why Meteora Stands Out
Meteora sets itself apart by combining the most successful ideas in DeFi and improving them for Solana’s fast, low-cost network. It takes what worked for platforms like Uniswap and Curve, then adds automation, yield optimization, and community-driven governance to create a smarter liquidity layer.
At its core, Meteora focuses on two goals: increasing capital efficiency and empowering users. Its dynamic systems adjust to market conditions in real time, allowing liquidity providers (LPs) to earn more while keeping trading smooth and affordable. Meanwhile, its community-first approach ensures that users—not venture capital firms—own and shape the platform’s future.
Here’s how Meteora compares to leading protocols:
By merging adaptive liquidity, fair tokenomics, and ecosystem-wide partnerships, Meteora positions itself as Solana’s go-to liquidity hub. It bridges the gap between traders seeking deep liquidity and LPs looking for reliable yield, redefining how DeFi efficiency should look in a high-performance blockchain environment.
MET Token’s Key Risks and Challenges
While Meteora offers strong innovation and community-driven growth, users should remain aware of several key risks:
– Market Volatility: Nearly half of the total supply was unlocked at launch, which could lead to sharp price swings during the early trading phase.
– Smart Contract Risk: Despite multiple audits, new features such as dynamic fees and automated vaults add technical complexity that may carry unforeseen vulnerabilities.
– Reputational Overhang: The project’s history as Mercurial Finance and its involvement in the 2025 LIBRA controversy still influence how some users perceive it.
– Solana Dependency: Meteora relies on the Solana network, so any congestion, outage, or performance issue could impact trading and vault operations.
– Governance Concentration: As the MET DAO matures, low participation or dominance by large holders could affect decentralization and decision-making.
Meteora’s team continues to address these risks through transparency, independent audits, and active community governance.
Meteora’s Outlook
With the MET token now live and community governance in motion, Meteora’s next chapter focuses on scaling growth, deepening decentralization, and exploring multi-chain opportunities. The team’s roadmap reflects a commitment to long-term sustainability and continued innovation.
Upcoming priorities include:
– Dynamic Bonding Curve 2.0: Introducing customizable pricing models for new token launches and partner projects.
– Enhanced LP Tools: Upgrading the user interface and adding auto-range management to simplify liquidity strategies.
– Cross-Chain Growth: Exploring deployments on other high-performance blockchains to build a connected, multi-chain liquidity network.
– Governance Expansion: Transitioning greater control to the MET DAO, including oversight of treasury spending, fee distribution, and incentive programs.
Explore on Your Own: MET DAO
If Meteora maintains its current pace and continues producing strong on-chain revenue, MET could emerge as one of the most resilient governance tokens in DeFi. Its combination of adaptable technology, fair tokenomics, and community ownership positions Meteora to play a leading role in shaping Solana’s next era of decentralized finance.
FAQs About Meteora (MET)
1. What is Meteora (MET)?
A decentralized liquidity protocol on Solana, designed to make trading and yield farming more efficient through adaptive AMMs and lending-enabled vaults.
2. How can I get MET?
Purchase through XT Pre-market OTC before the official listing, and trade the MET/USDT spot pair on XT.COM or Solana DEXs once it launches.
3. What makes Meteora unique?
Its dynamic fee model, capital-efficient vaults, and fair-launch infrastructure make it more adaptive and sustainable than traditional AMMs.
4. What is the Phoenix Rising Plan?
Meteora’s 100% unlock strategy that distributed tokens directly to the community, ensuring transparency and broad ownership from day one.
5. What can MET holders do?
Stake MET to earn a share of protocol fees and participate in governance decisions through the MET DAO.
6. What risks should users consider?
Volatility, potential smart contract vulnerabilities, and reliance on the Solana network. Always use verified channels when interacting with MET.
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