Raydium

Raydium is a decentralized automated market maker (AMM) protocol operating on the Solana blockchain. It offers fast and low-cost token swaps by leveraging Solana's high throughput and low fees, making it a core liquidity provider within the Solana DeFi ecosystem. Raydium supports permissionless creation of liquidity pools, allowing any user or project to launch concentrated liquidity pools (CLMM) or constant product pools (CPMM) for any asset. This flexibility enables projects to bootstrap liquidity and users to earn trading fees by providing liquidity.

Raydium distinguishes itself by offering two main pool types: concentrated liquidity pools that allow liquidity providers to allocate funds within specific price ranges for more efficient capital use, and constant product pools that follow the traditional XY=K formula for straightforward deployment and price discovery. Its routing engine optimizes swaps across pools for speed and cost efficiency. Additionally, Raydium supports permissionless farming where projects can incentivize liquidity provision with token rewards, and features a proprietary Burn & Earn program that lets projects lock liquidity while retaining rights to trading fees.

Developers can integrate with Raydium through its SDK and trade API, enabling seamless access to its liquidity and swap functions. The protocol is fully permissionless and open, encouraging community-driven pool creation and yield strategies. Raydium’s ecosystem presence since 2021 has made it the most distributed AMM on Solana, powering a wide range of DeFi applications. Comprehensive documentation and active developer support via Discord facilitate onboarding for traders, liquidity providers, and builders alike.