Meteora Updates DAMM v1 Accounting Design, Fixes External Destruction Issue of LP Tokens

The Solana liquidity protocol Meteora has completed improvements to the legacy DAMM v1 pool accounting design. The new design allows the pool to track the total supply of LP tokens independently, and external destruction no longer affects share calculations, with withdrawals requiring the signature of LP owners. In the previous design, if LP tokens were transferred to the System Program or Incinerator address and destroyed, it would reduce the total supply and inflate the shares of the remaining LPs. Security researchers discovered that a third-party wallet exploited this design to increase its share to approximately $12,600 across seven low-liquidity legacy pools. Upon notification, the team immediately paused and fixed the issue, and DAMM v1 has now returned to normal, except for these seven pools.

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