Raydium

Solana has a wide range of projects that are built upon it. This is due to the fact that Solana has a high level of scalability and solid architecture.

What Is Raydium?

Raydium is a decentralized finance (DeFi) application built on top of the Solana blockchain. It works as an on-chain order book automated market maker (AMM).
The main difference between Raydium and other AMM platforms is that it provides on-chain liquidity to a central limit order book.

How Does Raydium Work?

This means that users and liquidity pools can access the order flow and the liquidity of the entire Serum ecosystem. Serum is a centralized exchange software built on Solana where cryptocurrencies can be bought or sold by traders.
Raydium makes it possible for liquidity providers to generate rewards from trading fees just by contributing. The RAY token serves as an incentive for the users and is a farming reward.
The RAY token also serves another function, where it allows its holders to claim 0.03% of the trading fees. Additionally, it serves the role of governance votes when it comes to the decisions of the protocol’s future.
As the platform progresses, it intends to partner with other DeFi and AMM communities and provide support to build products on Solana.
This will contribute to a high level of liquidity and the integration of other DeFi protocols into the Solana ecosystem.
With all of that in mind, Raydium’s swap feature essentially allows any user to exchange between tokens through Serum, where its UI also allows for other trading features.

History of Raydium

Raydium launched the mainnet on February 21, 2021. It had 555 million tokens created at its genesis, where 34% of all of the tokens are scheduled to be released as liquidity mining incentives over three years. Furthermore, 30% of the tokens are intended for partnerships and the expansion of the ecosystem.
AlphaRay is responsible for the strategy and operations for the development
of Raydium.
AlphaRay has a history in algorithmic trading in commodities. However, over time transitioned to market-making and liquidity providing for cryptocurrency in 2017.
After getting into DeFi in 2020, AlphaRay saw a need for an order book AMM to aggregate the liquidity and pulled together a team to tackle this issue.
Other members in the team include XRay, GammaRay, StingRay, and RayZor.

The content of this article, analysis, report, or webpage is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. The author may hold digital assets mentioned in this report.