Introduction
Raydium.io is a cutting-edge DeFi platform that is a premier automated market maker (AMM) driving liquidity on-chain. Its deployment on Solana ensures low transaction fees and high scalability.
Raydium launched in February 2021 as the first hybrid AMM, quoting idle liquidity of CPMM pools on an order book (CLOB). Since its inception, Raydium has seen more than $63 billion in trading volume and has continued to refine its design to offer the best permissionless DEX experience on Solana.
Raydium is also the fastest-growing AMM, with more than 1,000 markets opening each day, having surpassed a staggering amount of 82,000 created markets.
Raydium and OpenBook: A Dynamic Duo in Solana DEXs
Much like Raydium, OpenBook operates as a decentralised exchange (DEX) on the Solana blockchain, providing swift and cost-efficient trading. Functioning as a Central Limit Order Book (CLOB), OpenBook forms a foundational element in Solana's DeFi landscape. Both DEXs capitalise on Solana's advantages, enabling almost instantaneous trades and token swaps at reduced costs. The seamless integration between Raydium and OpenBook establishes ecosystem-wide liquidity, delivering users speed at a low cost and a trustless, non-custodial experience.
The Two Pillars of Success in the Raydium Ecosystem
Raydium's ecosystem revolves around two primary components:
Raydium Token Swaps: Users can effortlessly swap tokens utilising Raydium's routing engine and permissionless liquidity pools, facilitating seamless market generation and trading.
Raydium Liquidity Pools and Yield: Raydium offers yield farming and liquidity pools, including Raydium farms, incentives for Concentrated Liquidity Management Module (CLMM) pools, and permissionless farms. The platform empowers any user to incentivise liquidity providers with rewards in any token.
Raydium’s RAY Token: Fueling the Ecosystem
The RAY token stands as Raydium's native asset, serving diverse in-protocol functions. Users acquire RAY through contributions to liquidity pools and staking, unlocking additional rewards. It also functions as a governance token, granting ecosystem participants the authority to contribute to platform management.
RAY is currently the most distributed Solana governance token and has ~160k holders on-chain. RAY is currently listed on more than 20 exchanges, and its daily trading volume is greater than $30 million. The RAY token boasts a total supply of 555 million tokens.
Raydium has redefined decentralised finance on Solana since its launch in February 2021. As the fastest-growing AMM with over 63 billion dollars in trading volume and 82,000 markets created, Raydium, alongside OpenBook, forms a dynamic duo, leveraging Solana's advantages for unmatched speed, cost-efficiency, and a secure user experience.
Raydium's success lies in its innovative token swap mechanism, robust yield farming, and the integration of the RAY token, fostering a comprehensive and inclusive ecosystem. The RAY token's wide distribution, with approximately 160,000 holders globally, showcases a commitment to a decentralised future.
The token distribution is as follows:
Mining Reserve: 34% – 188,700,000 RAY
Emissions will last approximately 120 months, with halvings occurring every six months. A halving means the budget for the maximum of tokens used for emissions during that period will be halved relative to the previous period. The full amount of the budget will not necessarily be emitted during that period.
Partnership and Ecosystem: 30% – 166,500,000 RAY
The allocated tokens for ecosystem development aim to support communities and contributors actively contributing to the growth of Raydium through grants and different campaigns.
Team (1-3 Year lock up) 20% – 111,000,000 RAY
Liquidity 8% – 44,000,000 RAY
Community & Seed 6% - 33,300,000
Advisors (1-3 Year lockup) 2% - 11,000,000 RAY
12% of taker fees on Raydium are allocated to RAY buybacks and deposited in a wallet controlled by the DAO.
With transparent token distribution and a unique DAO-controlled buyback mechanism, Raydium's governance model ensures community participation and sustainability. Raydium doesn't just address current challenges; it actively contributes to transforming decentralised finance on Solana, solidifying its position as a pioneer in the rapidly evolving blockchain landscape.
Conclusion
Raydium's DEX and AMM frameworks offer advantages over other Solana platforms. The platform facilitates quick, cost-effective token swaps, trading, and permissionless liquidity provision. Raydium is a promising solution within the Solana ecosystem, addressing existing challenges and contributing to the evolving landscape of decentralised finance.
For SwissBorg and its community, integrating Raydium's RAY token into our app offers significant benefits. By utilising SwissBorg's platform capabilities, RAY token holders can now enjoy the ease of buying, selling, and exchanging cryptocurrencies with 16 different fiat currencies , such as EUR, CHF, and GBP. This integration greatly enhances the accessibility and usability of RAY, promoting wider participation and simplifying the investment process.
