Raydium is a pure market maker which leverages supported tokens to develop numerous orders at various prices to offer liquidity. It works on the Solana network to permit it to conduct rapid and inexpensive transactions. As per the vendor, Solana can facilitate 65,000 trades/second with 400 millisecond block times.
Raydium was launched in the market in February 2021 with 555 million worth of tokens. Alpha Ray is one of the people behind the system, and he is in charge of business development, operations, and strategy, among other things. He, together with other developers, invented the platform after realizing that the crypto market needs a DEX to combine liquidity.
Raydium is an automated market maker (AMM) platform built to work on the Solana blockchain. It allows users to trade, swap, and offer liquidity to earn yields on cryptos. Raydium also works alongside Serum DEX to offer on-chain liquidity to its central limit order book. So, as a user of this AMM and a liquidity pool provider, you will easily access the order flow and liquidity of the whole Serum ecosystem and vice versa.
Pros & cons
- Supports many wallets
- A variety of tokens are available
- Several trading options offered
- Only integrated with a single DEX, Serum
Key features of Raydium
The platform offers several features:
- It includes a trading interface for users who desire to view TradingView charts, set limit orders, and regulate trading.
- It offers AcceleRaytor, an initiative meant to lead the development of the Solana Ecosystem.
- The system allows liquidity providers to produce RAY tokens as farming rewards.
- It has fusion pools that enable liquidity providers to earn tokens from projects supported as rewards.
- It creates a market on Serum that you can trade on any Serum DEX GUI.
- It gives traders the chance to exchange tokens rapidly through Serum.
What wallets does it support?
A broad range of wallets are supported by this software. You will find them below:
- Solflare Extension
- Sollet Web
- Sollet Extension
- Solflare Web
Follow the few steps below to connect to the wallet of your choice:
- Go to Raydium’s official site and click on the “connect” icon found at the top right corner of the page
- A list of wallets (as shown above) will appear
- Choose the one you want to work with. However, you will be required to install and initialize the wallet’s extension first. Just click on the link provided, and you will receive further guidance from there
- After that, you are now ready to use the wallet on the platform
How does Raydium work?
Raydium provides a platform where projects and trades can enter the Serum and Solana universe speedily to take advantage of its features. So, you can trade, swap, farm, and stake your tokens to earn additional income. As Raydium advances as a foundation for liquidity on Serum, it pledges to continue partnering with other AMM and DeFi communities and offer support to create their products on Solana.
What can you buy with Raydium?
Some of the assets you can buy on this DEX are SOL, RAY, AART, DINO, DIRE, and many more.
Are there any risks with Raydium?
Raydium is generally safe by virtue of being a decentralized exchange platform. It doesn’t hold your assets and only acts as a channel for peer-to-peer trading. What’s more, even when you conduct different transactions on the DEX, there’s no way it will access the funds. Therefore, fraudsters who might manage to hack your account won’t be able to touch your assets.
There are several types of fees you pay on this DEX:
- Swap fees
A 0.25% fee is charged every time you make a swap in the platform’s liquidity pool.
- Network fees
Each trade attracts Solana network fees, and the cost ranges between 0.0001 and 0.001 SOL.
- Serum order book fees
Any transaction carried out on this book pays a taker fee of 0.04% to Serum. The fee reduces depending on the SRM amount held.
You cannot engage in any transactions with Raydium using fiat currency because it doesn’t accept any deposits of such currency. This means that users lacking crypto holdings are not permitted to trade on the DEX.
Should you buy it?
This platform provides a good chance for traders to obtain additional income from their digital assets.
Final word for Raydium
Raydium stands out for working with the Solana blockchain, which is known to execute transactions with lightning-fast speeds. So, you need not worry about your trades lagging. Also, it provides you with many trading options to help you increase your income. However, the DEX needs to team up with more exchanges so as to provide the best and most effective price for a swap to its traders.
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