Say Hello to Raydium
An on-chain AMM powering the evolution of DeFi
🧬 So, what is Raydium?
Raydium is an automated market maker (AMM) built on the Solana blockchain which enables lightning-fast trades, permissionless pool creation, and new features for earning yield. Raydium has been driving liquidity ecosystem-wide since 2021, it is the first and most distributed AMM on Solana.
Raydium offers a few key advantages:
Faster and cheaper: Raydium leverages the efficiency of the Solana blockchain to achieve transactions magnitudes faster than Ethereum and gas fees which are a fraction of the cost.
Permissionless pool creation: Any user or project can create a concentrated liquidity pool (CLMM) or constant product pool (CPMM) for any asset.
Ecosystem Rewards: Any user or project can add token incentives to any pair or pool, boosting yield for liquidity providers.
🧐 What can I do on Raydium?
Trade and swap: Raydium's swap feature allows any two tokens to be exchanged quickly within liquidity pools.
Create a Pool: Create a pool for any asset in just a few clicks. Once live, your pool will be tradeable through Raydium's routing program and accessible across the Solana ecosystem.
Provide liquidity: Help projects bootstrap liquidity in their Raydium and earn trading fees for each swap going through that pool.
💻 Product Overview
Liquidity pool types:
Concentrated liquidity: Pool type that allows for asymmetric liquidity distribution. Pool creators and LPs can provide liquidity in their preferred price range, granting them more granularity in designing their liquidity strategy. This pool type allows for more depth around the current price, it usually is preferred for less volatile assets or more advanced users.
Constant product pools: Pools following the distribution K = XY. Extremely versatile and straightforward to deploy, this has been the primary pool type used for token launches and price discovery since 2021. Raydium has two programs for CP pools:
Constant product market maker (CPMM): Raydium's latest iteration of constant product pools. CPMM pools are anchor-compatible, support token 22, and have multiple fee configs.
AMMv4: Raydium legacy constant-product pools. AMMv4 is battle tested and the most distributed program on Solana. Often referred to as the hybrid AMM, this contract previously shared idle liquidity to a Central limit order book (Serum, then OpenBook). Today all pools function as a traditional AMM.
Permissionless farms: All Raydium pools allow projects and individuals to incentivize liquidity provision with rewards. You can learn about farm creation in the dedicated pool creation guide.
Burn & Earn: A proprietary liquidity locker that allows projects to renounce access over their liquidity while maintaining the right to claim pool trading fees. The burn & earn program is available for both CLMM and CPMM pools.
Routing Engine: Raydium smart routing contract that enables fast, cheap swaps through Raydium pools. The routing engine is accessible directly on Raydium.io, the trade API, and Raydium SDK.
🚀 Power your project with Raydium
Raydium has a host of features that can supercharge your project. And the best part is they are all permissionless! Users and projects can utilize the Raydium product suite for almost anything. Need help leveraging Raydium contracts, join #ask-devs on Discord to get assistance from fellow builders and contributors. Want to get in touch for any other reasons? Please fill out this contact form.
🐸 Jump right in
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