Overview

Raydium is a decentralized exchange (DEX) and automated market maker (AMM) built on Solana, designed for ultra-fast swaps, low fees, liquidity provision, and yield opportunities. Unlike typical AMMs, Raydium routes on-chain liquidity to OpenBook’s central limit order book so users benefit from both AMM pools and aggregated order-book liquidity across the Solana ecosystem. Raydium

Key Features

1) High-speed swaps & low fees

Solana’s throughput lets Raydium offer near-instant settlement and low transaction costs for token swaps and LP actions. Binance

2) Order-book connectivity (AMM ↔ OpenBook)

Raydium’s AMM provides liquidity to OpenBook’s order book, giving traders deeper liquidity and better price execution than isolated pools. Raydium

3) Concentrated Liquidity (CLMM)

Raydium supports CLMM pools where LPs place capital in price ranges to earn fees more efficiently (vs. constant-product pools that spread capital across the entire curve). Raydium’s CLMM program is open source. Raydium+1

4) Yield & staking

Users can earn from swap fees as LPs and can stake RAY in protocol programs when available. (Specific staking/earn campaigns vary over time.) Binance

5) Token launch tooling (“LaunchLab”)

Raydium provides token-launch tooling and pool creation for projects building on Solana. Sendai

How Raydium Works (in Short)

  1. Swaps: Traders swap tokens against Raydium pools; the AMM can also route to OpenBook liquidity. Raydium
  2. Liquidity Provision: LPs deposit token pairs into CLMM or constant-product pools and earn a share of trading fees. Raydium
  3. Fees: Fees are embedded in each pool’s parameters and distributed to LPs; exact splits vary by pool type and campaign. (Always check the pool UI/Docs before providing liquidity.) Raydium

The RAY Token

  • Role: Governance/rewards token within the Raydium ecosystem (e.g., incentives for LPs or staking). Binance
  • Max Supply: 555,000,000 RAY. Raydium+1
  • Emissions: The protocol currently emits ~1.9M RAY per year from the mining reserve (subject to governance/updates). Raydium
  • Allocation: A large portion of locked supply is allocated to the Mining Reserve, Partnerships & Ecosystem, and Advisors. (See official docs for the latest distribution.) Raydium

Market stats change often—always check a live tracker before publishing. For reference, public aggregators list circulating supply, price, and market cap in real time. CoinMarketCap+1

Security & Risk Notes

  • Past incident: In December 2022, Raydium disclosed an exploit tied to control of an admin key; the team later published compensation details and a claim portal for affected LPs. The episode underscores standard DeFi risks and the need for careful key management. Cointelegraph+1
  • General DeFi cautions: Smart-contract risk, market volatility, and liquidity risk apply. Do your own research (DYOR) and never risk more than you can afford to lose. Binance

Getting Started (Quick Steps)

  1. Wallet & SOL: Set up a Solana wallet (e.g., Phantom) and hold some SOL for fees.
  2. Connect to Raydium: Open the Raydium app and connect your wallet.
  3. Swap or Provide Liquidity:
    • Use Swap for instant token exchanges.
    • Use Liquidity to deposit pairs into a CLMM or CPMM pool and choose a price range (for CLMM). Raydium+1

Useful, Up-to-Date Links (Sources)

Quick FAQ

Is Raydium the same as Serum?
No. Raydium is an AMM/DEX on Solana. It connects its liquidity to OpenBook’s order book (the community-run successor to Serum) for better routing and depth. Raydium

Does Raydium support concentrated liquidity?
Yes—via CLMM pools (open source) where LPs choose active price ranges. Raydium+1

What’s the fixed supply of RAY?
Max supply is 555M RAY; emissions are currently ~1.9M RAY/year from the mining reserve (subject to change). Raydium

Written by https://cryptoud.net/