After Graduation, the synth trades against an internal constant-product AMM owned by the market itself. The pool serves two jobs: it is the liquidity venue for longs, and it produces the mark price that the funding mechanism compares against the oracle index.
The venue abstraction: internal curve and AMM versus Meteora DBC.The venue abstraction: internal curve and AMM versus Meteora DBC.

The venue abstraction: internal curve and AMM versus Meteora DBC.

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Real reserves

Unlike the launch curve’s virtual reserves, the AMM holds real assets:
  • amm_sol_reserve: lamports, held in the market’s SOL vault
  • amm_token_reserve: synth base units, held in the market’s pool token account
Both sides were seeded at graduation, paired at the curve’s closing price. The pool is protocol-owned: there are no external LPs, no LP tokens, and no impermanent-loss surface for users.

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Swaps

amm_buy(sol_in, min_tokens_out) and amm_sell(tokens_in, min_sol_out) are standard constant-product swaps with a fee in bps taken on the SOL side:
Fees accumulate in fee_lamports (withdrawable by the admin, see Instructions). Buys transfer tokens out of the pool account; sells transfer them back in. AMM trading neither mints nor burns supply.

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Spot and mark

The pool’s spot price, expressed in lamports per whole unit (the same scale as the index):
The market does not use spot directly. It maintains mark_ema, a time-weighted EMA of spot updated on every swap and every funding crank:
This is the AMM’s manipulation defense. A single-block push of the pool price moves mark_ema only by dt / w, and dt inside one block is zero or near zero. To move the mark meaningfully an attacker must hold the pool at a distorted price for a large fraction of the window, paying fees and inventory risk the whole time, while arbitrageurs trade against them.

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What the mark does and does not touch

The mark’s only job is steering funding. Collateral and liquidation math never read the pool, so manipulating the AMM cannot force anyone’s liquidation. See Price Index and Liquidations.

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Venues

Every market carries a venue field, and the internal AMM documented above is one of two shipped venues:
  • Internal: the program’s own curve and AMM. Fixed supply preminted at creation with the mint authority revoked; the mark comes from the pool’s own swaps. Everything above applies.
  • External: the token launched on Meteora Dynamic Bonding Curve and trades in a DAMM pool. The market attaches to the existing mint via create_external_market, starts directly Live, and the internal curve/AMM instructions reject with WrongVenue. Liquidity lives in Meteora’s audited, Jupiter-routed infrastructure; commas keeps the synthetic core (index, shorts, funding, liquidations).
Two consequences of the external design:
  • Mark is oracle-pushed. The program never parses external pool bytes on chain. The price feed (the relayer) computes the pool price from Meteora’s public API and pushes it via push_mark; it lands in the same mark_ema smoothing above, and a bad push can only tilt the clamped funding flow, matching the trust already placed in the oracle key for the index.
  • Treasury reserve for CDP supply. Both venues run the same fixed-supply path: open_short draws tokens from a program-held treasury (["treasury", market]) and repay_burn/liquidate return them. The reserve balance is a physical open-interest ceiling (TreasuryDepleted), enforced by token balances rather than a parameter; internal markets premint it, external markets fund it at listing.
Remaining future work on this path is UX-level: launching markets through a commas-branded DBC config key end to end. The on-chain venue system, treasury model, and mark path shipped with v1 and were exercised in the 20-test suite.
Price impact of a buy against the 100 SOL opening pool; impact halves as the pool deepens.Price impact of a buy against the 100 SOL opening pool; impact halves as the pool deepens.

Price impact of a buy against the 100 SOL opening pool; impact halves as the pool deepens.