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Last updated: Aug 16, 2023
Raydium is an AMM leveraging the Serum DEX’s central order book. The platform aims to enable “lightning-fast” trades, shared liquidity and various features for earning yield. Raydium’s main advantages as described by the company include the Solana blockchain’s efficiency in speed of transactions at fees far lower than those of the Ethereum blockchain. Besides that, by providing on-chain liquidity to the central limit order book of the Serum DEX, the project allows access to the order flow and liquidity available on the entire Serum ecosystem.
Through Raydium, users can trade and swap between tokens as well as do more advanced trading such as place limit orders. While taking part in Raydium’s farming liquidity pools and staking programs, users can earn RAY tokens.
Raydium offers a trading experience similar to that of a centralized exchange because of its Serum integration. The platform provides its users with an order book, charting and reliable limit orders on other DEXes. Any SPL tokens can be exchanged for other tokens with the platform’s RaydiumSwap feature. The protocol’s algorithm determines whether swapping through the Serum order book or a liquidity pool would provide the user with the best price, and executes the order accordingly.
Since the platform provides liquidity both from its own pools and from the wider Serum order book shared by all Serum users, there is more liquidity and less slippage for Raydium users.
Swaps made from Raydium’s liquidity pools are subject to 0.25% fee which is broken down to 0.22% getting redeposited into the liquidity pool to act as a reward for liquidity providers, and the remaining 0.03% is sent to the staking pools to become a reward for RAY token stakers. All orders transactions which happen through the Serum order book are only subject to Serum’s fees. The default starts at 0.22% and decreases depending on the amount of SRM tokens the user holds. All transactions are also subject to network fees on the Solana blockchain.
The company also runs an initiative, aimed to spearhead the growth of the Solana Ecosystem, named AcceleRaytor. The program serves as a launchpad for projects to raise capital and drive initial liquidity. Through this program users of the platform are eligible for an early access of participation in “carefully curated and vetted” token offerings.
Currently, the only type of wallet Raydium supports is Solana Program Library or SPL wallet. Besides that, users are reminded not to forget to acquire some SOL to complete transactions on the Solana blockchain.
When interacting with the Raydium app to use its swap feature, users need to first connect their wallet with it, select the desired tokens for the swap and the amount of the trade. Once approved, the transaction is said to take not more than a few seconds before the updated balance shows up in the user’s profile.
Raydium’s liquidity pools are built in a way that allows anyone to provide liquidity by adding their assets to a pool. To do so, it is needed to navigate to the Liquidity tab on the app, connect a wallet and select the tokens to be added to the pool. It is required to add liquidity in the form of two tokens in an equal proportion to each other according to their USD value. To facilitate this, once the amount of the first coin of the pair is entered, the protocol calculates and displays the amount of the second token. Once the transaction is approved in the wallet, the LP tokens should be in it. LP tokens earn their holders fees Raydium collects from swaps on the platform – 0.25% from each trade.
Raydium also allows LP token holders to deposit their tokens into Farms on the platform and earn rewards for providing liquidity in addition to trading fees accrued from liquidity pools. There are two types of farms available to users – Raydium Farms, which earn RAY token rewards, and Fusion Pools which earn project tokens.
The AcceleRaytor initiative consists of pools where users can contribute with funds and receive an allocation of the launching project’s token. To provide liquidity on the initiative it is required to visit its page in the Raydium app, where a list of available pools and data on their status is available. Each of the pools has additional details available, as well as requirements to join.
There are different model launches happening on the platform. One of them is named the lottery model and consists of a number of tickets eligible for participation in the program sold to participants for USDC and then deposited by them into their pool of choice. The USDC which accounts for non-winning tickets is available to be claimed back once the pool closes; however, to claim winning token allocations users need to wait a time that is specified in the UI of the dApp.
The RAY token’s supply is capped at 555M tokens, and the total RAY mining reserve consists of 34% of all tokens. Token emissions are set to last for 36 months, with halving occurring every six months.
34% of the tokens are allocated to the mining reserve, 30% are for partnerships and the ecosystem growth, 20% are given to the team with various lock-up periods between one and three years, 8% are set for liquidity, 6% were given to the community and used for a Seed funding round with a one-year lockup period, and the remaining 2% are reserved to advisors of the project and are subject to different lockup periods again between one and three years.
RAY holders have limited access to the governance of the project, which allows them to participate and vote on community proposals and amendments. Besides that, the token can be used for staking on the platform for a reward of 0.03% from the trades on the platform allocated to users depending on their share of the staking pool.
The Raydium team keeps their anonymity but provides some details about a few of their members. AlphaRay leads the overall strategy of the company, its operations and the overall product direction and business development. They are claimed to have a background in algorithmic trading in commodities and have started market making and liquidity providing in 2017. XRay is the company’s CTO and Developer Team leader. They are said to have eight years of experience as a trading systems architect both for traditional and crypto markets. This person designs all of Raydium’s systems and infrastructure. GammaRay leads marketing and communications, StingRay is an operating system and trading developer, while RayZor’s degree in system security engineering and experience as a white-hat hacker gave them the position to ensure Raydium capital’s safety.
Raydium audits are in the making and are expected to be available to the public soon.
Raydium’s most notorious partnership is with Serum and provides both protocols users with wider access to liquidity. Besides this collaboration, there are many projects which have used the AcceleRaytor program to launch their products. Some of the latest projects to take part in the initiative are Zebec, Yawww, Dappie Gang, Space Falcon, Realy, and RunNode.
Raydium has not updated its public roadmap and its latest goal was set for Q3 2021.
https://raydium.gitbook.io/raydium/
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Last updated: Aug 16, 2023
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