With less retail movement this week many Bitcoin firms are continuing to double down on the growing network activity of this asset. Finally seeing some green as Bitcoin HODLs at $40,000 USD the gains are starting to return with Amp pushing above 100% in weekly gains. Following behind is Quant and Chiliz acquiring 40% weekly return for its holders. The most interesting of which is Bitcoins position as the 4th highest gainer this week with 20%. While some of the SOL madness has calmed down, this week we’ll be looking into its first AMM called Raydium.
Introduction
Raydium is an automated market maker built on the Solana blockchain which leverages the central order book of the Serum DEX to enable lightning-fast trades, shared liquidity, and new features for earning yield. Raydium offers DeFi and AMM projects a clear path for bridging platforms and liquidity with the increased evolving capabilities of Solana and Serum. Current AMM DEXs and DeFi protocols are only able to access liquidity within their own pools and have no access to a central order book. Additionally, with the majority of platforms running on Ethereum, transactions are slow and gas fees are high. Raydium leverages the efficiency of the Solana blockchain to achieve transactions significantly faster than Ethereum at a fraction of the cost. Raydium offers an avenue for evolution, where projects and individuals can swiftly enter the Solana and Serum universe to leverage its distinct advantages in speed and efficiency. As Raydium progresses as a foundation for liquidity on Serum, it aims to partner with other DeFi and AMM communities to provide support and build out their products on Solana. Leading to both extra liquidity and faster, more efficient DeFi protocols for everyone.
Being part of the Solana ecosystem in the same way Uniswap is part of the Ethereum ecosystem. Users will need to create and fund a SOL wallet to navigate the Raydium Platform. Through their integration with Solana Raydium is able to offer a powerful trading experience like that of a centralized exchange thanks to Serum. If you’ve ever been annoyed by the total absence of an order book, charting, or reliable limit orders on other DEXs, Raydium is looking to fix that. On Raydium any SPL token can be quickly exchanged for another with RaydiumSwap. But, swaps are not allowed in any way when the price impact is above 15%. Liquidity comes both from its own liquidity pools, as well as from the wider Serum order book shared by all Serum users. This should translate to more liquidity and less slippage for Raydium traders but this early in their lifecycle it’s proving to be easier said than done. Raydium offers Yield farming options that currently enable farming for USDT, USDC, SRM, SOL, and ETH at significantly higher APR than other platforms. As new upgrades are made to Raydium these farms will be upgraded with previous yield offerings being retired to Legacy status. Raydium adds to the standard farming by offering a double reward system called Fusion Pools. These types of dual yielding pools offer new opportunities for users who can manage the increased risk of market volatility and impermanent loss.
Staking rewards are offered on Raydium for its native tokens, like most AMM protocols. Currently on offer is up to 32% APR for staking your tokens directly on the platform. For new projects looking to…
