Protocol Fees
For every swap that happens in a pool on Raydium, a small trading fee is taken. Depending on the specific fee of a given pool, this fee is split and goes to incentivizing liquidity providers, RAY buybacks and to treasury.
Standard AMM pools: For every swap in a standard AMM pool, a fee of 25bps is taken on the trade. From that, 22bps goes to LPs in the pool and 3 bps goes to RAY buybacks.
Concentrated liquidity (CLMM) pools: The trading fee for each CLMM pool is set to one of four fee tiers; 100bps, 25bps, 5bps, or 1bp. Liquidity providers earn 84% of the trading fee for every swap in the pool, while 12% of fees are allocated to RAY buybacks and the final 4% to treasury.
Trading fees that are allocated to buybacks are used to programmatically buy RAY at frequent intervals. RAY bought from these fees are then sent to DdHDoz94o2WJmD9myRobHCwtx1bESpHTd4SSPe6VEZaz.
A short list of key tokens allocated from buyback fees, including SOL, mSOL, stSOL, USDC, USDT and whETH are transferred and held in the RAY buyback wallet.
The remaining 4% treasury fees from CLMM pool trades are autoswapped to USDC and transferred to BXYi43kBPMSpeftkHMEMfdYHtv1w3SsXrtzavFGgMCHu.
Last modified 1mo ago