Meteora AG has activated its LP Stimulus Season 2 claims, enabling liquidity providers to collect their $MET token rewards until October 21, 10:00 AM UTC. Once claimed, these tokens can be staked immediately to boost yields.
Shift from TVL to Trading Fee Rewards
Departing from the prior model that rewarded providers based on Total Value Locked, Season 2 centers rewards exclusively on trading fees generated through Meteora’s Dynamic Liquidity Market Maker (DLMM) and DAMM V2 pools. Instead of compensating for just parked capital, the program now grants 1,000 points per $1 in fees earned, prioritizing active market participation.
The LP Stimulus collectively apportions 15% of the overall $MET supply between participants from both Season 1 and Season 2. Initially set at a 10% allocation, this percentage was increased to enhance incentives.
The snapshot for Season 1 was fixed on June 30, 2025, demarcating a clear cut-off after which all liquidity provision activity belongs to Season 2, which spans from July 1, 2025 onward.
Meteora’s expansion of DAMM V2 is a core element of Season 2’s design. The upgrade from earlier pools aims to foster community ownership and refine liquidity mechanisms, with the rewards system supporting providers using this latest infrastructure.
For investors, this means $MET tokens are distributed based on measurable protocol revenue contributions. Staking tokens right after claiming can limit immediate sell pressure and allow participation in governance.
Liquidity providers active in DAMM V2 pools since July 2025 should evaluate claiming and staking before the October deadline. The model strongly favors those contributing directly to trading fee generation.
This material is for informational purposes only and does not constitute financial advice.
