Raydium

Market Making

Raydium is a decentralized exchange native to Solana that allows anyone to trade crypto assets and provide liquidity to earn trading fees.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Raydium's swap feature allows tokens to be exchanged quickly through Serum's central order books, while the user interface enables more advanced trading features.
What we like less
Raydium contracts are fully upgradeable by the core team at any time as there is no timelock program currently in place.
What it means for you
Offer you a powerful trading experience similar to that of a centralized exchange (CEX) due to its integration with Serum. You can view advanced charts, set limit orders and have more control over your trading.
Information
Exploit/Hacks
One
Info
  • Website
  • Token: RAY
  • Tags: Market Making
Key Metrics
  • TVL: $944.8M (Rank #26)
  • TVL Ranking by Market Making: #0
  • Blockchain: Solana
  • Chain TVL
    • Solana: $944.84M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors; Kudelski audited in May 2021
  • Anonymous team reduces transparency
  • One unmitigated protocol hack since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Core contracts can be upgraded with just an EOA wallet
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Highly concentrated voting power increases risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about Raydium

How Raydium works

Raydium is decentralized exchanged built on Solana that leverages Serum's central orderbook to fill trades. This is contrast to the majority of AMMs that rely on liquidity pools rather than traditional order books to execute decentralized trades. Raydium also uses its own liquidity pools which are funded by users who deposit two tokens in equal proportion in exchange for a liquidity provider (LP) token that represents their claims to their share of the total pool, plus a portion of trading fees. Users can earn additional yield by locking up their LP tokens to farm them for RAY tokens.

How Raydium makes money

Raydium charges a 0.25% fee on all trades within a liquidity pool. Of this amount, 0.22% is paid to LPs as a reward for providing liquidity and 0.03% is used to market buy RAY and distribute to stakers.

How you make money on Raydium

You can earn 0.22% of all trades on Raydium by providing liquidity on the exchange. The protocol also earns 0.04% for every trade that is distributed to RAY stakers.