Raydium V3 vs. V2: Key Differences and How to Utilize PandaTool

Recently, the leading Web3 toolbox PandaTool announced the launch of the Raydium V3 market management tool. Many are curious about what V3 is and how it differs from V2.

What is Raydium V3?

Raydium V3 introduces a new user interface and a new liquidity pool protocol called CPMM, improving on the old AMM protocol used in V2.

Advantages of Raydium V3:

1. Improved Protocol: CPMM allows for cheaper and more efficient liquidity pools.
2. Lower Costs: Creating V3 pools is simpler and less costly.
3. Reduced Fees: Fees for creating liquidity are significantly lower in V3.
4. Ease of Use: V3 is the default tool on Raydium’s website.

Disadvantages of Raydium V3:

1. Indexing Issues: Problems with proper indexing on platforms like DexScreener.
2. Low Trading Volume: Lower trading volume compared to V2.
3. Transaction Delays: Initial delays in transactions may affect early activity.

How to Create a Liquidity Pool in Raydium V3

Create the Pool

• Open the Raydium website: https://raydium.io/liquidity-pools/ and click the “Create” button on the right.

• After opening, select the standard AMM pool and proceed to the next step.
• Creating a centralized pool is complicated, and the price cannot fluctuate too much, so it is generally recommended to create a standard AMM pool.

Determine Price and Ratio

• On the new page, fill in the respective token and quantity to create liquidity.

• Token Quantity: The amount of tokens you want to add to the pool (your issued tokens).
• SOL Quantity: Your trading pair token (quote token).
• Opening Time: The time when the token starts trading. Before this time, the pool cannot be traded (UTC time, which is 8 hours different from Beijing time).
• Opening Price: The initial price of the token, which depends on your token quantity and SOL quantity. For example, if I initially put 100 million tokens and 1 SOL into the pool, my opening price is 0.00000001 SOL, which converts to 0.00000182 USDT.

• Set the opening time, and Raydium provides an automatic timezone conversion feature, making it easy to set up.
• Confirm and initialize the liquidity, and confirm the payment in the wallet (note: the pool creation fee is around 0.2 SOL).

Remove Liquidity Pool

• Open Raydium, find your portfolio here, select the standard liquidity pool, and you will see your pool.

• Note: If you set an opening time, you need to wait until the opening time to see the pool. To remove the pool, select the “-” button, choose the proportion to remove, and confirm in the wallet.

Raydium V3 Token Market Cap Management

Using PandaTool to create tokens and add liquidity in V3, we found a 40-minute delay in trading, which is uncommon on other exchanges.

To address this, use PandaTool’s Solana market cap management tool for trading: https://solana.pandatool.org/swapbot.

Solana Market Cap Management Bot is a system supporting Raydium V3 automated trading, allowing for buying and selling at preset target prices.

Raydium V3 Summary

Raydium V3 has the potential to revolutionize DeFi liquidity provision with its new CPMM protocol and cost-efficiency features. However, until it resolves indexing and visibility issues, Raydium V2 remains the safer and more effective choice for token launches. Using V2’s established infrastructure ensures higher market capitalization and trading volume, laying a solid foundation for your token release.

It’s important to note that Raydium V3 is still in the testing phase. Once all issues are resolved, V3 may become a true liquidity powerhouse. If you create a pool in V3 but cannot trade, the PandaTool market bot is your best option.

PandaTool：https://solana.pandatool.org/

Telegram：https://t.me/pandatool