What is Raydium Protocol
Raydium is an automated market maker (AMM) built on the Solana blockchain which leverages the central order book of the Serum decentralized exchange (DEX) to enable lightning-fast trades, shared liquidity and new features for earning yield.
A significant difference between Raydium and other AMMs is that Raydium finds the best possible prices for token swaps by routing orders through either a liquidity provider or via the Serum order book
Why is Raydium different?
Other AMM DEXs and DeFi protocols are only able to access liquidity within their own pools and have no access to a central order book. Additionally, with the majority of platforms running on Ethereum, transactions are slow and gas fees are high. Raydium offers a few key advantages:
- Faster and cheaper: Raydium leverages the efficiency of the Solana blockchain to achieve transactions magnitudes faster than Ethereum and gas fees which are a fraction of the cost.
- A central order book for ecosystem-wide liquidity: Raydium provides on-chain liquidity to the central limit order book of the Serum DEX, meaning that Raydium allows access to the order flow and liquidity of the entire Serum ecosystem.
- Trading interface: For traders who want to be able to view TradingView charts, set limit orders and have more control over their trading.
What is the unique selling point?
Raydium is the perfect place for your yield farming and decentralized token swap on Solana, but it does much more than that.
Below are some of the features and things you can currently do on Raydium.
- Trade & Swap
- Liquidity mining
- Launchpad (AcceleRaytor)
- Drop zone
- Fast transactions and low fees: This is an obvious advantage because Raydium is integrated with the Solana blockchain, which is one of the cheapest and fastest in the crypto world at the moment
- Scalability: Being launched on the Solana blockchain, Raydium also taps into the scalability that Solana offers. Thus, developers can launch their projects through Raydium and get integrated into the Solana and Serum protocols with little hassle.
- Intuitive trading platform: DeFi protocols usually offer crude trading experiences that may be challenging to beginners. However, Raydium offers an intuitive trading interface that gives users the option to view trade charts, set limit orders, and have full access to their funds. In essence, they are in complete control of their trades, and there is no need for a middleman
- Access to Serum DEX order book: Raydium has access to liquidity on the entire Serum protocol, with a Total Value Locked(TVL) of $374.96 Million. This is more than we can say for many other AMMs with little liquidity, which can sometimes be frustrating.
- Integration with only one DEX: Ironically, one of the significant advantages of Raydium is its major disadvantage. Because the Raydium interface is only integrated with Serum DEX, it can’t interact with other DEXes, and this may be disadvantageous if other DEXes offer lower rates than Serum DEX.
- Anonymity: Another cause for concern regarding Raydium is that the team behind it hasn’t been fully identified yet. They are known simply as AlphaRay, XRay, and GammaRay. This pseudonymity is more disturbing when you realize that the Raydium team hasn’t gone through any significant audit since its inception. It may be nothing; after all, Bitcoin’s creator is known by a pseudonym – Nakamoto, to date. However, it would be better if the team worked on that.
RAYDIUM Trading Fees
There are three types of fees you pay on Raydium:
- Network fees: These fees are paid in SOL and are usually between 0.0001 to 0.001 SOL.
- Swap fees: 0.25% fee is taken on every trade in the Raydium pools. 0.22% of that goes back to the liquidity pool and acts as rewards to liquidity providers, while 0.03% goes to RAY staking
- Order book fees: Transactions completed on the Serum order book pay a starting fee of 0.22%. This decreases according to the amount of Serum tokens in the wallet.
This is a launchpad initiated by Raydium to spearhead the growth of the Solana ecosystem. It helps raise initial liquidity for the latest Solana projects and benefits both the project and the Raydium community. Each AcceleRaytor launch utilizes two different types of pools, the community pools, and the RAY pools
- Community pool: This pool is open to the entire ecosystem regardless of whether or not you’ve associated with or used Raydium in the past
- RAY pool: This pool is open to users who stake RAY tokens on the Raydium platform. There is a minimum number of RAY that needs to be staked in the RAY staking pool(usually 20 RAY) for participants to be qualified
Once a launch is announced, qualified participants can either be guaranteed allocation proportional to their contributed funds or have to hustle it out on a First-come-first-served basis. It all depends on the specific project requirements.
This latest feature of Raydium is an initiative to promote the growth of Non-fungible Tokens(NFTs) on the Solana Chain. It’s a launchpad for the hottest Solana NFT projects to raise capital, distribute NFT collections, and build their communities
This innovative launchpad was announced on September 8, 2021, and features time-limited participation, on-chain lottery, transferrable ‘Drop Box’ NFTs, anti-phishing, and anti-bot techniques. CyberSamurai NFT is the first project to be launched on the Raydium drop zone.
Is Raydium Crypto a Good Investment?
Fundamentally, the Raydium token has prospects. This is because it sits nicely as the first-mover when it comes to tokens in the Solana ecosystem. Its unique features and innovative mechanisms, as discussed, make it a worthy currency on the Solana chain.
It would be better if the team behind Raydium fosters more trust in themselves by addressing their anonymity and audit issues. That would do well for the long-term development of the coin. It’s good to note, at this point, that the views expressed here are NOT to be considered as FINANCIAL ADVICE.
- Token Name: RAY Token
- Ticker: RAY
- Blockchain: Solana
- Token Standard: SPL
- Contract: (Solana SPL address 4k3Dyjzvzp8eMZWUXbBCjEvwSkkk59S5iCNLY3QrkX6R ) & (Ethereum ERC-20 address 0x5245C0249e5EEB2A0838266800471Fd32Adb1089)
- Token Type: Utility, Governance.
- Total Supply: 555,000,000 RAY.
- Circulating Supply: Updating…
- Mining Reserve: 34%
- Partnership & Ecosystem: 30%
- Team: 20%
- Liquidity: 8%
- Community Pool: 6%
- Advisors: 2%
Token Release Schedule
- Mining reserve: Updating.
- Partnership & Ecosystem: Updating.
- Team: Locked 1 – 3 Years.
- Liquidity: Updating.
- Community Pool: Locked 1 Years.
- Advisors: Locked 1-3 Years.
Token Use Case
- Governance: RAY holders can participate in platform governance through Voting.
- Earn Fees from Raydium Pools: RAY Holders can Staking RAY to earn a portion of trading fees arising from Raydium Trade and Raydium Swap.
- Farming Reward: RAY Token is used as a reward for Farmer.
- AcceleRaytor: Staking for the release of IDO allocations.
Market and Community
Raydium is one of the leading AMMs in the DeFI space that allows users to trade with most of the features available to CeFi. As a result, this will drive the evolution of the DeFi space by acting as a bridge between CeFi users and the crypto world. Although a lot of DEXs are trying to achieve this goal, Raydium is another interesting addition as it offers more features without sacrificing security and decentralization.
Find more information about: Raydium
If you have any questions, comments, suggestions, or ideas about the project, please email [email protected].
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.