What’s the difference between LME (liquid malt extract) and DME (dried malt extract)? Both LME and DME undergo similar processes. Each are created into wort through a typical mash and then dehydrated. LME is dehydrated to about 20% water, whereas DME is dehydrated to 2% water. The question of, “which one is better” is not an easy one, it all depends on what you’re looking for and how it’s going to be used.