Raydium is an automated market maker known as AMM. It is also a liquidity provider that operates on the solona blockchain.
The DeFi market is growing fast, but developers face so many challenges. On the one hand, DeFi transactions are slow and expensive; on the other hand, liquidity pools operate on different protocols. Instead of cooperating, they are competing with one another. There are so many opportunities in the DeFi market. However, not everyone can benefit from them because there is no order book available on the market. You cannot place a limited order. Raydium is a definitive answer to all the above problems. Read on to learn more about this fantastic market maker.
What is Raydium?
Raydium is an Automated market maker that lets traders trade digital assets decentralized and permissionless by using liquidity pools. Liquidity pools are one of the fantastic tools of DeFi markets.
In these pools, individuals provide liquidity. They lock their asset in a smart contract.
Liquidity providers are incentives by reward in RAy. Ray is the native token of the platform.
Advantages of Raydium
There are so many interesting about Raydium. But if you are looking to know what are the advantages of his automated market maker read on:
It is an automated market maker built on Solana.
It is affordable and fast because it benefits from the efficiency of the Solana blockchain.
It has provided an order book. The order book of the Serum DEX can benefit from the on-chain liquidity of the Raydium.
Used who wish to view TradingView charts can use the trading interface and set limit orders to control their trading.
How does Raydium work?
Traders have access to trading history and an order book in traditional markets.
Through an order, book traders can determine the quantity of the asset they would like to sell or purchase at a specific price.
Both markets makers or sellers and market takes, or buyers use to order books to have a seamless trade.
Raydium supports the Serum decentralized exchange, so smart contracts for enabling order book is possible.
Automated market makers like Raydium enable users to buy and sell digital assets in a pool of assets provided by liquidity providers.
The whole process might be familiar if you know Uniswap. Uniswap is an automated market maker as well on the Ethereum platform.
As Raydium is built on the Solana blockchain, it hedges against the high gas fee of the Etherum blockchain.
The integration between Raydium and Serum
To benefit from accessing an order book, Raydium supports Serum exchange. On the other hand, Raydium can benefit from the liquidity pools of the Seum.
Raydium is not just a yield earning and exchange platform; it also has a fundraising platform known as AcceleRaytor. This feature helps new projects to raise capital and build using the infrastructure of the Solana network.
How to use Raydium?
You can trade and swap using this platform—exchange two tokens in no time through Serum. And enjoy a better trading experience by using limit orders features.
You can also earn RAY by locking your tokens and staking. Developers can start their projects on the Serum DEX r even think about having a partnership with Solana.