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Investing In Raydium (RAY) – Everything You Need to Know

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Raydium (RAY) functions as an on-chain order book and AMM (Automated Market Maker). The system combines an advanced AMM protocol, liquidity pools, a proprietary cryptocurrency, and a variety of ways to secure yields. Notably, Raydium is a pioneer in the market as the first AMM combining the scalability of the fourth-generation Solana blockchain with a DEX (decentralized exchange) limit order book.

What Problems Does Raydium (RAY) Attempt to Fix?

There are a variety of issues that Raydium was designed to reduce. For one, its simplistic nature and familiar features help with user onboarding. Raydium comes with a variety of tools that CEX users will find welcoming. By simplifying the transition to the DEX market, Raydium helps to drive DEX adoption. DEXs provide traders with non-custodial, peer-to-peer, trading options. They are both more secure and cheaper than CEXs (centralized exchanges).

Raydium (RAY) - Homepage

Raydium (RAY) – Homepage

Data Theft

Data theft is on the rise. There have been billions in personal data stolen in just the last year alone. Raydium doesn’t require users to provide this information to take advantage of its features. As such, there is no data for hackers to target.

Lack of Liquidity

The fragmented nature of the DeFi sector has led to a lack of liquidity. Each network operates as a separate ecosystem at this time. Raydium helps to alleviate this problem for traders by operating in tandem with Serum. Raydium traders gain access to unlimited liquidity and order flow on the Serum DEX.

High Fees

High fees are another issue that has slowed crypto adoption. Ethereum, the largest DeFi network in the world, is in the midst of record congestion which has driven fees up. Raydium provides a secure alternative to Ethereum-based DEXs. The protocol charges a small fee of 0.25% for both takers and makers fees. Additionally, the average transaction cost of sending the protocols utility token, RAY is $0.01. Notably, 88% of the exchange fees are redistributed to the community via the liquidity pool.

Benefits of Raydium (RAY)

There are a variety of unique benefits that Raydium brings to the DeFi sector. For one, Raydium leverages a central order book which makes it much more familiar to traders coming from platforms like Coinbase and Binance. The network provides users with multiple ways to secure passive rewards including farming and staking options.

Raydium (RAY) - Twitter

Raydium (RAY) – Twitter

Scalable

In terms of scalability, Raydium far outpaces the competition. The developers choose to build on the Solana blockchain due to its linear scalability. The network has been clocked at 65,000 transactions per second. The network has 400ms block times as well. In comparison, Ethereum can handle only 15 tps and has a block time of 13 seconds.

Interface

Raydium was built from the ground up to resemble centralized exchanges but provides all the benefits of DEXs. The interface provides powerful trading charts and real-time data to improve your ROIs and help you to better manage your assets. You can find all the platform’s features in plain view which helps new users to navigate more efficiently. There are familiar features like limit orders, which are usually only available on CEXs.

Solana Ecosystem

Raydium, as the first AMM in the Solana ecosystem, plays a vital role in helping new projects gain liquidity. The protocol seeks to serve much the same role that Uniswap did for Ethereum by enabling new projects to secure crowdfunding in an open and transparent manner.

How Does Raydium (RAY) Work

Raydium was built on the Solana blockchain. As such, it can support the latest DeFi features. The protocol also integrates the liquidity of the Serum DEX to improve the trader experience. By adding a central trading book to Serum, Raydium creates a more user-centric ecosystem.

Token Trading

To trade tokens on Raydium, you simply need to attach your network wallet. The Swap user interface integrates a variety of technologies to help you trade better. For example, it leverages advanced smart contracts to enhance users’ trading patterns.

Staking

Those seeking more consistent, low-risk rewards can try the staking features. The system is set up to take 12% of the transaction fees to incentivize those staking RAY tokens in the pool. Staking is one of the most popular DeFi features in the market. Unlike trading, it doesn’t require you to possess special skills or the ability to read technical charts. When you stake your tokens, you are agreeing to lock them into a Raydium smart contract. The amount of RAY you stake and the time you lock the tokens up is what determines your reward payout level.

Farming

You can also farm RAY tokens using the network farming pools. Farming is similar to staking in that you receive rewards for providing liquidity to a smart contract. However, unlike staking, there are no lock-up periods. As such, the APY changes daily. These changes mean that the best farmers must monitor their holdings to maximize their returns. Raydium provides a frictionless yield farming option.

RAY - CoinGecko

RAY – CoinGecko

RAY

RAY is the primary utility token for the Raydium network. The token operates on the Solana blockchain which provides it with fast transaction times. It can be used for staking, farming, trading, sending value, and is required to participate in the governance system. It’s also how new projects seed liquidity pools on the DEX.

Raydium API

Developers can easily access the real-time data that Raydium provides via the network’s API. APIs are a great way for platforms to provide support for projects that improve the overall user experience.

History of Raydium (RAY)

The Raydium concept emerged in 2017. The platform was developed by Alpha Ray. In February 2021, the DEX became a full-fledged AMM and liquidity provider. Today, Raydium is a popular DeFi project that continues to garner attention.

How to Buy Raydium (RAY)

Raydium (RAY) is currently available on the following exchanges:

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.

The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)

Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

BinanceBest for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Raydium (RAY). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality.  It is the best exchange for residents of India.

Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.

Raydium – Empowering the Solana Ecosystem

Raydium has some significant advantages. For one, as the first AMM and liquidity provider on Solana, new projects are certain to utilize its services to secure access to crowdfunding. In addition, the protocol provides users with a responsive and secure way to trade digital assets while avoiding the headaches and high fees of the Ethereum-powered platforms. For these reasons and more, Raydium appears to be well-positioned in the market.

 

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

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