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 the 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 the treasury.

Trading fees that are allocated to buybacks are used to programmatically buy RAY at frequent intervals. RAY bought from these fees is then sent to DdHDoz94o2WJmD9myRobHCwtx1bESpHTd4SSPe6VEZaz.

The remaining 4% treasury fees from CLMM pool trades are auto-swapped to USDC and transferred to 6pJuA19E33AFdPh9oWkWY3u6yCdiqAm26AdcFJQBUhLU, which is controlled by the Squads Mutli-sig and used is to pay for RPCs. Standard AMM and CP-swap pool creation: Standard AMM pool creation incurs a fee of 0.4 SOL to prevent pool spamming and support protocol sustainability. The fee on the new CP-swap pools amounts to 0.15 SOL. These fees are collected by the accounts 7YttLkHDoNj9wyDur5pM1ejNaAvT9X4eqaYcHQqtj2G5(AMM v4) & DNXgeM9EiiaAbaWvwjHj9fQQLAX5ZsfHyvmYUNRAdNC8 (CPMM), controlled by the protocol multisig, and reserved for protocol infrastructure costs.