Raydium is an automated market maker (AMM) and decentralized exchange (DEX) built on the Solana blockchain. While liquidity on most AMM DEXs is siloed off from other platforms, Raydium leverages its pool liquidity to place orders on the central limit order book of the Serum DEX.
Raydium's Liqudity Providers (LPs) have access to the order flow and liquidity of the Serum ecosystem, and vice versa. Through the Raydium platform, users can trade using an order book or AMM, participate in liquidity mining, or stake RAY to participate in token sales and earn staking rewards.
RAY is Raydium’s native utility token and is used in the following functions:
Staking: Users can stake RAY to earn staking rewards (in RAY) and a portion of the trading fees from the Raydium platform.
Liquidity Mining: Users can contribute to the liquidity pools to earn liquidity mining rewards and a share of the DEX transaction fees. Users can deposit tokens into liquidity pools and earn a share of the DEX transaction fees. Users can further stake the LP tokens in the Raydium farms or Fusion farms to earn liquidity incentives, which may be paid in RAY or other project tokens.
Launchpad: Users can stake RAY for additional allocation in Initial DEX Offerings (IDOs) of new Solana projects on the AcceleRaytor launchpad. In previous IDO rounds, users that do not stake RAY may also participate in smaller amounts.
Governance: RAY stakers will have the opportunity to participate in the future governance of the platform.
Raydium consists of the following major components working in conjunction:
Raydium AMM: Raydium leverages liquidity from pools to create a market on the Serum central limit order book, without the need for additional market makers. This means users can either swap within a pool on Raydium, or access liquidity on the Serum DEX graphical user interface on Raydium.
Yield Farms: Raydium offers liquidity mining rewards to incentivize LPs. Users can earn either RAY or other project tokens depending on which pool(s) they provide liquidity for. Other projects can also bootstrap liquidity for their token by collaborating with Raydium on farming incentives.
AcceleRaytor: An IDO launchpad for the latest Solana projects and drives initial liquidity, while enabling users to participate in carefully curated and vetted token offerings.
As of August 10th 2021, the total supply of RAY is 555,000,000 and the current circulating supply is 58,143,673 (~10.58% of the total token supply).
Learn more about the token distribution of RAY here.