What is Raydium?
Raydium (RAY) is an AMM protocol built on the Solana Blockchain that offers on-chain liquidity to a central limit order book. The protocol operates in tandem with Serum and leverages the DEX central order book. Thus, Raydium ensures shared liquidity, high-speed trades, and new means of yield earning. Raydium’s native token, RAY, will form the foundation for more development through its operation on Solana Blockchain. This will bring more partnerships with other platforms while increasing performance for its own platform and the entire Solana ecosystem.
By leveraging on the Serum DEX, Raydium gives its liquidity providers (LPs) access to the on-chain liquidity and the complete order flow of Serum.
Raydium Historical Background
In February 2021, Raydium (RAY) launched its main net with 555 million tokens. Alpha Ray is the lead in the overall operations, strategy, business development, and product direction for Raydium. In addition, he has backing in algorithmic trading in commodities. In 2017, Alpha switched to liquidity providing and market making for digital assets.
Through his move into decentralized finance in 2020, Alpha discovered the crypto market need for an AMM order book to aggregate liquidity. This will be achieved from the release of Serum. So, this prompted him to gather a team of experienced developers to work with.
Raydium development team members include:
- XRay – He is the Chief of Technology and Dev team leader. He has about eight years of experience in trading and systems architecture for crypto and traditional markets. In addition, X is the designer of all Raydium’s infrastructure and systems.
- GammaRay – He is the head of marketing and communications. He is involved in product and strategy direction. Before his involvement in Raydium, his crypto focus was on discretionary marketing and technical analysis. Gramma has built a career in a data analytics and market research firm. Additionally, he worked on corporate marketing and client engagements.
What Makes Raydium Unique?
Other AMM DExs and DeFi protocols can access liquidity only within their pools. Therefore, they can’t access a central order book. Furthermore, most of the exchanges operate on the Ethereum blockchain, thereby causing network congestion. Thus, transaction rates are slow, and the network takes high fees on gas. Through its incorporation with Serum on the Solana blockchain, Raydium (RAY) displays several features for its customers. Some of them include token trading, staking, swapping, and farming. The protocol stands as the first AMM optimizing both Solana blockchain speed and a DEX limit order book. This accounts for its boundless liquidity supply, frictionless yield farming, and speed token swap.
Raydium displays the following key benefits that distinguish it from other AMM in DeFi:
- Cheaper and faster – Through its leverage on Serum in the Solana blockchain, Raydium performs transactions faster than Ethereum. Also, the gas fees are meager than those obtainable on the Ethereum network.
- Wide liquidity for the ecosystem through a central limit order book – Raydium gives limitless liquidity to Serum’s central limit order book. Thus, the entire Solana ecosystem can access uninterrupted liquidity and flow of order through Raaydium’s functionality.
- Amazing trading interface – Through its amazing interface, users can view their Trading charts. This will assist them in controlling their trades and setting limit orders.
Raydium Token – RAY
The Raydium exchange native token is RAY. Raydiun exchange is a protocol that operates on the Solana Blockchain. So, you’ll need a compatible Solana Program library (SPL) wallet for storing your RAY tokens. The Raaaydiun Exchange native token, RAY, is used for the following:
- Governance voting for protocol decisions making.
- Staking for the release of IDO allocations.
- Staking for protocol fee earnings
Raydium (RAY) has a market cap of over $447 million. The protocol has a maximum supply of 555 million RAY tokens from its main net launch in February 2021. The circulating supply is at 58,723,906 RAY tokens. The price of RAY is $7.14 per token at the time of writing.
The protocol has drawn a plan for the distribution of its RAY tokens after its launch.
- 34% of the total token supply will be distributed as liquidity mining rewards across 3 years.
- 30% of the tokens are kept for collaborations and expansion of the Raydium ecosystem. Some of the beneficial developmental processes include project grants, projects for Raydium, and community assistance.
The exchange functions by locking these tokens for one year and unlocking them linearly for the next two years.
Raydium Security
Decentralized exchanges have a global outspread of their servers. The story is not the same for centralized platforms where the servers are pitched on just some locations. Thus, it’s usually easy to hack a CEX server from its mounting location. Conversely, the spread out of servers for DEXs reduces the risk of downtime and gives users unlimited hours of operations. Also, the spread-out fortifies DEXs from easy hackings and fraud.
This’s because taking down one server has minimal or no effect on the entire network of a DEX. But an infiltration into a serve of centralized exchanges causes more harm and a huge loss of funds. What’s more, when you execute a transaction on a DEX, the platform has no access to your funds. So, if there’s a case of hacking, the fraudster won’t still access your funds. However, trading on a CEX keep your assets right on the exchange.
It will remain there until you withdraw the fund to your wallet. So, in a situation of possible hacking, your funds on a CEX will be stolen. Such situations are completely not obtainable in a decentralized exchange such as the Raydium.
Bottom Line
Raydium (RAY) from its operability has distinguished itself among other AMMs in the Defi system. While other AMMs’ liquidity is limited to their pools, Raydium stretches to provide on-chain deep liquidity for its users. Furthermore, by leveraging Serum on the Solana blockchain, Raydium opens a central limit order book. The protocol has all it takes to bring a desirable evolution of DeFi by pioneering limitless order flow in the industry.
With its outstanding features, the exchange offers its users excellent crypto trading experiences irrespective of their level of operations. In addition, there are customization settings that enable users to select their desirable levels and work according to their preferences.
