What is Raydium (RAY)?

Deep Dive

1. Purpose & Value Proposition

Raydium solves liquidity fragmentation in decentralized trading by combining its AMM with Solana’s order book ecosystem (e.g., OpenBook). This hybrid model allows users to swap tokens at optimal prices while providing liquidity providers access to broader markets. Its LaunchLab platform simplifies token launches, letting projects deploy liquidity pools with customizable bonding curves and instant trading via Raydium’s infrastructure (Millionero Magazine).

2. Technology & Architecture

Built on Solana, Raydium leverages high throughput (65k TPS) and sub-cent fees. It supports two pool types:
- Concentrated Liquidity (CLMM): Lets liquidity providers target specific price ranges for efficiency.
- Constant Product (CPMM): Uses the classic $k = x*y$ formula for stable price discovery.
Its smart routing aggregates liquidity from both its pools and external order books, minimizing slippage.

3. Tokenomics & Governance

RAY’s utility includes:
- Fee capture: 0.03% of swap fees fund buybacks, with tokens burned to reduce supply.
- Governance: Voting rights for protocol upgrades (in development).
- Staking rewards: Users earn a share of protocol revenue.
As of September 2025, RAY has a capped supply of 555 million tokens, with ~48% circulating.

Conclusion

Raydium is Solana’s DeFi cornerstone, merging AMM efficiency with order book depth while fostering innovation through LaunchLab. Its deflationary token model and ecosystem integrations position it as a critical liquidity layer. How will Raydium adapt to Solana’s evolving multi-chain ambitions while maintaining its dominance in decentralized trading?