Everything You Need to Know About Raydium, Part 1

With the FTX collapse, we see two things happening. First, an increase in sales for non-custodial wallets. Second, many people moving away from CEXes to DEXes. Raydium is such a DEX, built on Solana.

So, let’s dive straight in and see what Raydium is all about.

What Is Raydium?

Raydium is an Automated Market Maker or AMM. It built on the Solana blockchain. Raydium is also the most popular DEX on Solana. It was using the Serum platform, who offer decentralized and open liquidity infrastructure. However, Serum’s funding came from FTX and Alameda. As a result, Serum is now defunct.

For all Raydium users, they need to cancel and settle existing orders. As of December 14, 2022, Raydium will stop all services with Serum. Its new start is with OpenBook. This is a community-led fork of the Serum V3 program. In other words, for existing users, not much will change. They will find familiar features on OpenBook.

Raydium has $55.6 million TVL and a trading volume of $51.9 billion. DeFi services available on Raydium, include:

• Swapping
• Farming
• Liquidity pools
• Launchpad

The AMM has an order book and liquidity pools. So, Raydium checks for each swap what the best option is. Swapping in a liquidity pool or with the order book. It will execute the trade according to the best option. To clarify, from now on, Raydium will use the OpenBook order book.

What Is the Raydium Coin?

The RAY token is the native token for the Raydium ecosystem. It has several use cases; so let’s have a look at those.

• Pay transaction fees with RAY

• Receive rewards in RAY

• Staking of RAY

• Deposit RAY into liquidity pools and receive rewards

• Governance

Every time the platform uses a liquidity pool for a swap, holders of staked RAY receive a 0.03% reward in RAY. Your reward is proportional to your stake in the pool.

The current price of RAY is $0.190489. This is 11.1% down during the last seven days. However, over one year, RAY is down 98.2%. The ATH was at $16.83, which is 98.8% down. Like many other coins during this bear market. It reached its ATH in September 2021. RAY ranks at #508 when ranked for market cap size.

The market cap is $30.12 million. RAY has a max supply of 555 million tokens. There are already 158 million tokens in circulation. 

Source: CoinGecko

How Do You Buy the Raydium Coin?

If you like to buy the Raydium coin, RAY, at a CEX, you will need to start with setting up an account. This requires a KYC procedure. The exchange will ask for a legal ID and the process may take up to a week. This may differ between exchanges. 

On a DEX, there’s no need for a KYC procedure. You can start trading straight away. The only thing you need is a compatible wallet and some funds.

Solana has a couple of good wallet options. For instance, Phantom Wallet, Brave Wallet, or the Solflare Wallet. Know that Ethereum wallets, like MetaMask, do not support Solana. On the other hand, Trust Wallet does support Solana.

The various CEXes that offer the RAY token will all have different features. In other words, it will vary how you can buy RAY. Some will offer fiat or credit card options, whilst others may only accept crypto. DEXes will only accept other crypto in most cases.

Source: Raydium swap

Where Do You Buy the Raydium Coin?

You can buy the RAY token at most big exchanges, like Binance, Gate.io, MEXC Global, Kraken, or OKX. Plenty of smaller, local exchanges also offer RAY. For example, Bitazza in Thailand and Singapore. But also, TokoCrypto in Indonesia or WazirX in India. For DEXes, you may want to look at Raydium or Jupiter. 

Conclusion

Raydium is the most popular DEX on Solana. It has a good TVL, and its RAY token has good use cases. We explore more about Raydium in our Part 2 article. 

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