DEX Pool Analysis, Solana AMM Pool Mechanics & Comparison

Solana's DEX ecosystem spans multiple AMM designs: constant-product pools (Raydium V4), concentrated liquidity (Raydium CLMM, Orca Whirlpool), and bin-based liquidity (Meteora DLMM). Each pool type has distinct fee structures, capital efficiency characteristics, and risk profiles. Understanding these differences is essential for selecting the best execution venue, evaluating liquidity quality, and identifying pool-level risks.

This skill covers:

• Pool type mechanics and fee structures across Solana DEXes
• Pool health metrics (TVL, volume efficiency, fee APR, LP count)
• Pool creation patterns (PumpFun graduation, manual creation)
• Best pool selection for trade execution
• Pool age and risk assessment

Related skills: See lp-math for AMM formulas, liquidity-analysis for depth assessment, impermanent-loss for LP risk, slippage-modeling for execution cost.

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1. Pool Types on Solana

Raydium V4 (Constant Product)

The most common pool type for newly launched tokens. Uses the classic xy = k invariant with a fixed 0.25% swap fee. Integrated with OpenBook (formerly Serum) for combined AMM + orderbook liquidity.

Program ID: 675kPX9MHTjS2zt1qfr1NYHuzeLXfQM9H24wFSUt1Mp8
Fee: 0.25% per swap (0.22% to LPs, 0.03% to RAY buyback)

Key characteristics:

• Full-range liquidity (infinite price range)
• Simple LP provisioning, deposit both tokens in equal value
• Lower capital efficiency than concentrated liquidity
• OpenBook market ID required for pool creation

Raydium CLMM (Concentrated Liquidity)

Concentrated Liquidity Market Maker pools allow LPs to specify price ranges, improving capital efficiency by 10-100x compared to V4.

Program ID: CAMMCzo5YL8w4VFF8KVHrK22GGUsp5VTaW7grrKgrWqK
Fee tiers: 0.01%, 0.05%, 0.25%, 1%, 2%
Tick spacing: 1, 10, 60, 120, 240 (corresponding to fee tiers)