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 the treasury.

Standard AMM pools: The trading fee for the AMM (AMM v4) is 0.25%. From that, 0.03% (3bps) goes to RAY buybacks. For the new CP-Swap (CPMM), the trading fee for each pool is set to one of four fee tiers; 4%, 2%, 1%, and 0.25%. 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.

Concentrated liquidity (CLMM) pools: The trading fee for each CLMM pool is set to one of eight fee tiers; 2%, 1%, 0.25%, 0.05%, 0.04%, 0.03%, 0.02%, and 0.01%. 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 allocated to buybacks are used to programmatically buy RAY at frequent intervals. Bought back RAY is held by DdHDoz94o2WJmD9myRobHCwtx1bESpHTd4SSPe6VEZaz. Read more here.

The remaining 4% treasury fees from CLMM pool trades are auto-swapped to USDC and transferred to CHynyGLd4fDo35VP4yftAZ9724Gt49uXYXuqmdWtt68F (previously sent to 6pJu). Treasury fees, also denominated in USDC, from CP-Swap (CPMM) pool trades are transferred to FS3HipLdf13nhaeN9NhRfGr1cnH84GdNEam3WHhUXVYJ. These accounts are controlled by the protocol multisig.

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.