Raydium is a decentralized exchange (DEX) and liquidity infrastructure on the Solana blockchain. It provides token swaps, liquidity pools, and yield opportunities for liquidity providers, and it also supports perpetual futures trading through an integrated perps interface.
Raydium’s spot trading experience routes swaps across available pools to seek competitive execution and reduce slippage. The protocol supports multiple pool architectures, including concentrated liquidity pools and constant product pools, and it maintains a legacy AMM program that originally combined pool liquidity with on-chain order book routing. Raydium’s documentation also describes a token launch mechanism that uses bonding curves and automatically migrates liquidity into Raydium pools once a launch target is met.
Raydium supports three main pool types. CLMM pools offer concentrated liquidity, where liquidity providers choose a price range to concentrate capital. CPMM pools are Raydium’s newer constant product pools following the x·y = k invariant, with multiple fee tiers and support for Solana Token-2022. Raydium also maintains “Standard AMM v4” pools, a legacy constant product design that was originally a hybrid model connected to central limit order books, but which Raydium now describes as operating as a traditional AMM.
Swap fees vary by pool configuration, with Raydium noting a range from 0.01% to 4%. Raydium publishes a protocol-level fee split for swaps, with the majority of fees paid to liquidity providers and a portion allocated to RAY buybacks and, for some pool types, the treasury. For CLMM and CPMM pools, Raydium lists an 84% share to liquidity providers, 12% to RAY buybacks, and 4% to the treasury. For Standard AMM v4 pools, Raydium lists an 88% share to liquidity providers and 12% to RAY buybacks. Raydium also lists a pool creation fee of 0.15 SOL for creating Standard AMM v4 or CPMM pools.
RAY is Raydium’s native token. Raydium’s published tokenomics describe a fixed maximum supply of 555 million RAY, with 34% allocated to a mining reserve (188.7 million RAY). Raydium also states that 12% of all trading fees generated by the protocol are used to buy back RAY. In addition, Raydium offers RAY staking, where users can stake RAY in the Raydium app to earn additional RAY rewards.
Raydium LaunchLab is described as a community-powered token launch platform built around bonding curves. Early buyers purchase along a pricing curve, and the token price increases as supply is bought. Raydium’s documentation states that once a launch target is reached, the token “graduates,” and liquidity is automatically migrated into a Raydium pool, with post-migration liquidity locked or burned depending on the launch configuration.
Users should consider smart contract risk, liquidity risk, and execution risk, including slippage and price impact. Raydium’s permissionless pool creation model also increases the importance of verifying token mint addresses before swapping. In December 2022, third-party incident analyses reported that Raydium experienced a private key compromise that allowed an attacker to drain assets from certain pools, highlighting operational security risks that can exist alongside smart contract risk. Activity on Raydium is also closely tied to Solana network conditions, including periods of congestion that can affect execution timing and transaction confirmation.
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