Raydium is an automated market maker (AMM) based on the Solana blockchain that includes features like as yield farming, staking, token swapping, and trading.
Deep liquidity, frictionless yield farming, and lightning-fast token swaps are all features of the AMM.
What am I able to accomplish on Raydium?
On the Solana chain, Raydium is the most common AMM.
As an AMM Raydium is the perfect place for your yield farming and decentralized token swap on Solana, but it does much more than that.
Below are the features of Raydium.
- Trading
- Token Swap
- Liquidity mining
- Farming
- Staking
- IDO (AcceleRaytor)
1. Investing
Raydium uses the Serum DEX order book to provide users with a decentralized trading experience that allows them to place limited orders.
How to trade on Raydium
First, click to launch the Raydium App and click on Trading. Clichy clicking on the Trading link, you will be taken to the Radium DEX.
From there, as shown on the top left-hand side of the above screenshot, you may choose your trading pair (SOL/USDT) and set your buying or selling prices and amounts appropriately, as indicated on the right-hand side of the above screenshot.
Once you’re done setting your price and amount values, just click LIMIT BUY/SELL and wait until your order is filled.
No more waiting around by your laptop to catch your target price anymore. Set it and leave it with Raydium DEX and focus on your normal life.
Raydium DEX trading costs are the same as Swaps -0.25 percent.
2. Token Exchange
Raydium allows you to exchange one SPL (Solana-based tokens) token for another.
Choose the tokens you’d like to swap and enter. The quantity of the token you’d want to exchange for the other.
Once you’ve finished and are satisfied with the results of the exchange, click the Swap button as indicated above. That is all there is to it. Your trade will be completed in less than a second, and the tokens will be in your wallet.
The network fees are so cheap you wouldn’t even notice them. It’s like 1000X lower than whatever you pay on BSC. Which is one of the many things that make Solana interesting.
3. Mining for Liquidity
You may mine your favorite SPL tokens on Raydium. By adding liquidity to the right liquidity pools, just like any other AMM protocol.
Every trade that uses your liquidity pool incurs a 0.25 percent swap fee. Which is shared among all liquidity providers in the pool in the same token.
Thus more trading activity means more fees are being generated and the more of the respective tokens you will be able to mine.
4. Farming for Yield
In addition to the trading fees earned by Radium farms, you can earn RAY tokens by participating in liquidity mining.
Raydium farms are liquidity pools that allow liquidity providers to earn RAY tokens as farming incentives by using their LP (liquidity provider tokens or receipts).
To farm RAY on Raydium, you must first put your LP token in the right farm.
There are only 5 pools that support RAY farming as of the time of writing this post (May 18th), as demonstrated in the screenshot above.
So, if you want to farm RAY, you’ll need to deposit your LP tokens in the various farms and give liquidity to any of the supported pools.
5. Staking
You can equally earn more RAY with your RAY tokens by staking it for a nice APR (up to 23%) on Raydium.
Initial DEX offerings (IDOs) are the new ICO and every centralized exchange and AMM seem to be running one.
As the project team puts it,
“Raydium’s AcceleRaytor programme is aimed at accelerating the expansion of the Solana Ecosystem. It acts as a platform for new companies to acquire funds and drive initial liquidity in a decentralised and interoperable manner, allowing both project and Raydium communities to engage in carefully curated and approved token sales “..
To be eligible for the AcceleRaytor programme, you must have a minimum of 50 RAY staked.
You can join any presently existing AcceleRaytor pool and specify the amount of USDC you want to use to buy the new token if you’re qualified to participate by holding the minimum needed RAY in staking.
Each qualified AccelRayto programme member will receive a portion of the new coin based on their contribution or other criteria proposed by Raydium and the project team.
And once the program is over, you can claim your tokens and the remaining unused funds (if any).
The Raydium (RAY) Token
RAY is the native token of the Raydium protocol and one of my favorite Solana-based tokens.
RAY has a maximum supply of 555,000,000 tokens which makes it a little more appealing compared to the supply of similar tokens on other chains.
And given a similar userbase, TVL, and effective token burn program, the price of RAY should enjoy a more sustainable upside.
Conclusion
I think Raydium has what it takes to become the Uniswap or PancakeSwap of the Solana chain.
What do you think about Raydium and what’s been your experience with the Solana-based AMM so far? Share with us in the comments section below.
