Foresight News|Oct 16, 2026 03:37
**[Meteora Updates Legacy DAMM v1 Accounting Design, Fixes LP Token External Burn Inflation Issue]**
Foresight News reports that Solana liquidity protocol Meteora's product engineer Dann tweeted that the team has completed improvements to the accounting design of the legacy DAMM v1 pools. The new design allows the pool to independently track the total supply of LP tokens, ensuring that external burns no longer affect share calculations, and withdrawals now require the signature of the LP token owner. 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 LP tokens.
Security researchers discovered that a third-party wallet exploited this design in seven low-liquidity legacy pools, increasing its own shares to approximately $12,600. Upon receiving the notification, the team immediately suspended and fixed the issue. Aside from these seven pools, DAMM v1 has now returned to normal operations.
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