Raydium | Trading Non Stop

What is RAY?

Raydium (RAY) is a decentralized exchange (DEX) and automated market maker (AMM) built on the Solana blockchain. It’s designed to offer fast, low-cost token swaps while connecting liquidity across the Solana network.

Solana-Powered AMM – Combines liquidity pools with order book features for smoother, more efficient trading.
Launchpad for New Projects – Supports new Solana-based projects through its AcceleRaytor platform, helping them launch their tokens.
Community Governance – RAY token holders can vote on protocol updates and earn rewards from the platform.

Deep Dive

1. Core Functionality & Value

Raydium serves as a central hub for liquidity on Solana by combining its own liquidity pools with OpenBook’s order book system. This setup provides deeper liquidity and better prices than many other decentralized exchanges. Unlike traditional DEXs, Raydium lets users swap tokens directly from liquidity pools and access centralized limit orders, which helps reduce price slippage (unexpected price changes during trades). Thanks to Solana’s fast network—processing around 65,000 transactions per second—Raydium offers near-instant trade settlements with fees under one cent.

2. Technology & Structure

Raydium operates on Solana and supports two types of liquidity pools:

Concentrated Liquidity (CLMM): Allows liquidity providers to focus their funds within specific price ranges, making their capital more efficient.
Constant Product (CPMM): Uses a traditional formula ($x \times y = k$) common in many AMMs, which works well for new token launches.
The platform automatically routes trades to the best prices available across its pools and OpenBook’s order book. You can find more details in their official documentation.

3. Ecosystem & Launchpad

Raydium’s AcceleRaytor launchpad has helped launch over 35,000 tokens, including YouBallin’s $YBL in November 2025. Projects use bonding curves—a method to set token prices dynamically—to discover fair market prices. Liquidity providers earn rewards in RAY tokens and the new project tokens. The platform also encourages users to participate by offering staking options and sharing trading fees.

Conclusion

Raydium is a key decentralized finance (DeFi) protocol on Solana, combining the speed and efficiency of AMMs with the depth of order book liquidity. It also supports new projects through its launchpad, helping grow the Solana ecosystem. As Solana continues to expand, Raydium’s ability to adapt will be crucial to maintaining its position as a core liquidity provider.