Raydium is an automated market maker (AMM) on the Solana Blockchain, deeply integrated with the central order book of Serum DEX, providing high-speed transactions, low fees, and a comprehensive liquidity experience.
Raydium leverages the technological advantages of Solana along with the ability to provide liquidity directly to the Serum order book, opening up an efficient AMM solution connecting the DeFi ecosystem on Solana, optimized for investors.
MAIN CONTENT
Raydium integrates AMM with the unique central order book of Serum DEX on Solana, connecting liquidity across the entire ecosystem.
Key features: Trading, fast SPL Token Swap, transaction fees of only 0.25% along with rewards for liquidity providers and RAY stakers.
RAY is a versatile SPL Token, with transparent allocation, stored on many major wallets, and has a clear development roadmap, demonstrating its position in the DeFi space.
What is Raydium?
Raydium is a pioneering AMM (Automated Market Maker) platform on the Solana Blockchain, directly integrated with the central limit order book of Serum DEX. As a result, Raydium provides fast trading experiences, low fees, and maximizes liquidity from the entire Serum ecosystem, creating a significant difference compared to traditional AMMs like Uniswap on Ethereum.
This platform allows users to access liquidity directly on-chain instead of being limited to individual Pools. According to many experts, Raydium is the strategic piece of the DeFi ecosystem on Solana, especially when the market demands speed, low costs, and efficient order execution. The order book integration mechanism ensures that all liquidity Pools are always connected to the entire order book on Serum, maximizing benefits for both liquidity providers and professional traders.
Raydium leverages Solana's technology to accelerate the DeFi experience, enabling millions of orders to be matched within seconds, which is our great expectation for a new generation AMM on Blockchain.
Larry Cermak, Research Director at The Block, comments on Raydium – 2021
What are the highlights of Raydium?
Raydium is highly regarded for its ultra-fast trading speed, low Gas costs thanks to operating on the Solana Blockchain, and the ability to share liquidity directly for the entire order book of Serum DEX. It is the only AMM platform on Solana that leverages both the CEX order book model and AMM liquidity Pools.
Another appealing point of Raydium is its professional interface, similar to centralized exchanges (CEX), integrating TradingView charts, placing limit orders, and flexibly controlling trades. According to the Solana Foundation report, transaction processing speed on Solana remains stable under 1 second, and transaction fees are only a few thousand USD, providing a significant advantage for Raydium compared to AMMs on Ethereum, where Gas fees can fluctuate from 10 USD to 50 USD per transaction during peak periods.
Raydium helps DeFi overcome barriers related to speed and cost. Liquidity flowing through the Serum order book allows Solana's blockchain to unleash its full potential, enabling financial applications to scale up without the congestion issues seen on Ethereum.
Raj Gokal, COO & Co-founder of Solana Labs, March 2021
What features does Raydium have?
Raydium offers a diverse feature set serving both professional traders and the general DeFi user base, including: Direct trading with limit order books, instant SPL Token swaps, competitive fee systems, and attractive rewards for liquidity providers as well as RAY stakers.
What is different about trading on Raydium?
Raydium deeply integrates with Serum, providing an experience equivalent to a centralized exchange: Integration with TradingView charts, placing limit orders, viewing detailed order books, transaction history, and adjusting various parameters for each order. This helps traders control risks and optimize entry and exit points, similar to professional tools on major exchanges.
This model is fundamentally different from traditional DEXs, which only provide simple Swap or Market Order features. At the same time, this mechanism utilizes liquidity from the entire system, helping to reduce slippage and increase order execution efficiency at all times during market fluctuations.
How does Token swapping on Raydium occur?
RaydiumSwap allows users to quickly convert any Token that belongs to the SPL standard with just a few operations, confirmation speed under 1 second, low fees, and almost no order delays. This is especially suitable for retail traders, holders, or anyone looking to lock in profits when the market fluctuates strongly without worrying about slippage.
Liquidity pools on Raydium not only serve swap orders but also automatically share liquidity across the entire Serum DEX ecosystem, creating a seamless swap experience and avoiding liquidity shortages like many other DEXs.
Is Raydium's fee mechanism competitive?
All transactions and swaps on Raydium incur a fee of 0.25%. Of which, 0.22% goes directly into the liquidity Pool, rewarding liquidity providers, while 0.03% goes to the staking Pool, used as rewards for RAY stakers.
This policy helps ensure a stable reward stream, incentivizing the community to hold Tokens, while keeping liquidity abundant and increasing the level of engagement between the platform and investors. According to DeFi Llama statistics for Q1 2024, Raydium continuously ranks in the top 5 DEXs on Solana in terms of trading volume and total value locked in the system.
The 0.25% fee is currently the competitive standard of modern AMM platforms, ensuring balanced benefits among traders, stakers, liquidity providers, and the long-term development of the protocol.
DeFi Llama report, Q1 2024
What is the basic information about Raydium Token RAY?
RAY is a standard SPL Token on Solana, used simultaneously as a utility and governance Token for Raydium. This Token plays a central role in the operation of the ecosystem, incentivizing liquidity providers, staking, and participating in protocol governance.
Name: Raydium Token (RAY)
Ticker: RAY
Blockchain: Solana
Token Standard: SPL
Contract Address: 4k3Dyjzvzp8eMZWUXbBCjEvwSkkk59S5iCNLY3QrkX6R
Token Type: Utility and Governance
Total Supply: 555,000,000 RAY
The transparent allocation mechanism and multifunctional role help RAY become one of the prominent DeFi Tokens on Solana.
How is RAY allocated?
RAY has a reasonable allocation structure that ensures balanced benefits among groups: Mining, ecosystem, development team, liquidity, community, and advisors as follows:
Mining: 34%
Ecosystem and Partnerships: 30%
Team: 20%
Liquidity: 8%
Community and family sale: 6%
Advisors: 2%
This allocation method is evaluated by the DeFi community as transparent, providing a solid foundation for long-term development. A large portion allocated for mining and ecosystem ensures product development momentum, expands partnerships, and maintains sustainable liquidity.
How to earn and own RAY Tokens?
RAY Token is currently available for direct purchase on many supported exchanges such as Serum, FTX. Previously, RAY was one of the hot Tokens with many attractive liquidity mining and staking programs. Moreover, regular Airdrop programs for users contributing to liquidity Pools or actively using the platform also attract investors.
The community should prioritize trading and storing RAY on major exchanges that meet security standards or directly on personal wallets to minimize risks. The diversity of ways to earn, buy, and receive rewards helps RAY maintain its position as a prominent DeFi coin on Solana.
Which wallet safely stores RAY Tokens?
RAY is a SPL standard Token on Solana, thus has a wide range of storage options, including: Sollet Wallet, Solong, Bofida, Coin98 wallet, FTX exchange wallet, and many multi-chain wallets that integrate Solana. This allows investors to flexibly control their assets in a secure manner and comply with storage standards on Solana.
To ensure safety, users should prioritize storing RAY on cold wallets and limit storage on exchange wallets, especially in the context of increasing security risks on centralized exchanges.
What are the highlights of Raydium's development roadmap across different stages?
Raydium has completed many important milestones since 2021, demonstrating a clear strategic vision in promoting DeFi on Solana. Major stages of Raydium's development roadmap include:
Q1/2021: Launch liquidity pools and staking system, deploy Mainnet, develop Cross-Chain swap features, launch website and trading platform.
Q2/2021: Research and apply new market-making models, strengthen cooperation with various protocols within the ecosystem.
Q3/2021: Build governance ideas in collaboration with partners, continue to enhance market improvements, and develop leverage solutions to expand liquidity.
This roadmap emphasizes ecosystem connectivity and aims to expand Raydium's influence as a bridge in DeFi on Solana.
What notable experience does the Raydium development team have?
The Raydium development team consists of seasoned professionals in finance, algorithmic trading, and digital asset markets. A notable figure leading is AlphaRay – responsible for overall strategy, product activities, and business development. AlphaRay has worked in algorithmic commodity trading and entered the cryptocurrency market-making and liquidity provision space since 2017.
These experts recognized the demand for an AMM that combines the order book, effectively aggregating liquidity and developing the team with seasoned developers in the fintech – crypto field. To date, Raydium has successfully built an operational team and developed a professional AMM protocol, contributing to making the platform a key bridge of DeFi on Solana.
We see great potential in DeFi as Blockchain technology and the AMM model integrated with the order book help create a completely new and optimized trading experience for all market participants.
AlphaRay, Founder and CEO of Raydium, interviewed by TinTucBitcoin, 2022
What is Raydium's influence in DeFi on Solana?
Raydium is not only a standard AMM on Solana but also plays a key role in connecting liquidity for Serum DEX. Thanks to direct access to the limit order book, Raydium links liquidity across the entire ecosystem, supporting hundreds of projects, protocols, and investors on Solana to maximize the use of decentralized liquidity.
According to DeFi Llama, Raydium's total TVL (Total Value Locked) once peaked at over 850 million USD by the end of 2021, contributing to making Solana one of the leading Blockchains in terms of managed assets in DeFi. Raydium's development capacity, liquidity stability, and Pool expansion significantly outpace many competitors on the same network, ensuring that smaller projects and new Pools can easily raise funds and develop new protocols without facing liquidity barriers.
Criteria Raydium Uniswap (Ethereum) PancakeSwap (BNB Chain) Underlying Technology Solana, order book integration Ethereum, only AMM Pool BNB Chain, only AMM Pool Transaction Processing Capacity About 65,000 orders/second About 15–30 orders/second About 300 orders/second Average Transaction Fee 0.25% (~0.001 USD) 0.3% (average 10–20 USD/order) 0.25% (~0.1–1 USD/order) Central Order Book Integration Yes (Serum DEX) No No Highest Total TVL 850 million USD (2021) 8 billion USD (2021) 6 billion USD (2021)
How Raydium synchronizes cross-chain liquidity, integrates limit orders, and offers extremely low costs has helped Solana rise strongly on the global DeFi map, driving capital flows into the new ecosystem.
Solana Foundation Report, August 2023
Frequently asked questions
How does Raydium differ from traditional AMMs on Ethereum?
Raydium integrates the central limit order book of Serum, allowing for fast trading, low fees, and access to liquidity across the entire ecosystem instead of just within individual Pools. This helps reduce slippage and increase trading efficiency.
How to earn and stake RAY?
You can buy RAY on supported exchanges and participate in staking directly on the Raydium platform to earn rewards from transaction fees and regular incentive programs.
Does Raydium require KYC when using?
No. Raydium is a decentralized DApp, so most trading features, liquidity provision, and staking do not require KYC, only a connected Solana wallet.
Which wallet is best for storing RAY?
Users should prioritize using Sollet, Solong, Coin98, or cold wallets that support SPL to ensure safety and avoid risks when storing Tokens on centralized exchanges.
What is the current trading volume on Raydium?
According to DeFi Llama in Q1/2024, Raydium ranks in the top 5 DEXs on Solana in terms of total value locked and trading volume, just behind Jupiter Aggregator.
What notable features will Raydium expand in the future?
The project aims to connect multiple DeFi protocols, develop Cross-Chain, and integrate more automatic Pool models as well as provide multi-dimensional governance support for the community.
What is the role of RAY Token on Raydium?
RAY is a governance, utility, staking, and reward Token, holding a central position in promoting finance, governance, and maintaining liquidity in the Raydium ecosystem.
Source: https://tintucbitcoin.com/raydium-ray-la-gi/
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