Raydium – Complete tutorial for beginners =

Raydium Protocol has built a platform on Solana’s blockchain. It is lightning fast, safe and cheap. This allows you to easily buy, swap or stake Raydium (RAY). They act forward-looking and always look for the latest features. In this article I will tell you everything about the platform and the coin, will you read along?

View quickly

 

  • View quickly
  • What is Raydium?
    • Evolution is Imminent
    • Why choose Raydium?
    • What can you do on the Raydium platform?
  • What is an AMM?
  • What is DeFi?
  • Raydium (RAY)
  • How do I buy Raydium?
  • SPL Wallet
  • About serum
  • Trade & Swap Raydium
    • Swapping costs
    • Strikes from RAY
    • AcceleRaytor
  • Community
  • Conclusion

What is Raydium?

Raydium is an automated market maker built on the Solana (SOL) blockchain. The automated market maker (AMM) uses the central order book of Serum’s decentralized exchange. This allows you to execute lightning-fast transactions, take advantage of shared liquidity and earn returns through new features.

Solana was chosen to build on because they stand out for lightning-fast DeFi speeds. Over 65,000 transactions per second, 400 ms block times and transaction costs lower than $0.01. You can find all the information in the Litepaper of Raydium Protocol and you can download it here.

Watch a video below, which tells more about Raydium and the use of the Solana Blockchain.

 

Evolution is Imminent

I want to copy this piece of text from Raydium 1-to-1. It is a catchy text and if I start translating it, the power will be lost.

As Raydium progresses as a foundation for liquidity on Serum, it aims to partner with other DeFi and AMM communities and provide support to build out their products on Solana. This will bring both additional liquidity and faster, more efficient DeFi protocols to the ecosystem.

With the addition of external oracles, Raydium will be able to incorporate additional flexibility and functions for future versions and features. In addition, several newly-launched borrow/lending protocols on Serum could give Raydium the ability to add margin trading, unlocking even more liquidity from on-chain assets.

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. Faster transactions, significantly lower fees, and ecosystem-wide liquidity are essential if the people, projects, and protocols of DeFi are to evolve. We hope to see you on the other side.

Waarom kiezen voor Raydium?

Other AMMs and DeFi protocols can only access liquidity within their own pools. In addition, most platforms run on the Ethereum blockchain, which means that transactions are slow and gas fees are high.

Raydium offers some important advantages:

  1. It’s faster and cheaper – Raydium leverages the efficiency of Solana (SOL), so transactions are many times faster than Ethereum (ETH) and gas fees are a fraction of the cost;
  2. Using a central order book ensures liquidity throughout the entire ecosystem. Raydium thus offers on-chain liquidity, thanks to Serum DEX. Simply put, this means you have access to order flow and liquidity throughout the ecosystem ;
  3. Trading interface for traders who want to view charts, set limit orders and have more control over their trading.

What can you do on the Raydium platform?

To begin with, Raydium is always looking for collaborations. So are you planning to build something and want to enjoy top notch features? Then collaborating with Raydium, on the Solana (SOL) blockchain, might be interesting for you. These are currently the platform’s use cases:

  • Trade and Exchange
    Thanks to Raydium’s swap function, you can quickly exchange two tokens via Serum, while the DEX UI enables advanced trading functions. Think of limit orders;
  • Earning RAY
    While farming liquidity pools and staking, you can earn RAY Tokens (RAY) yourself.

What is an AMM?

We are taking such a big leap of faith to explore all the corners of the Raydium platform, but before we do I want to explain what an Automated Market Marker (AMM) is.

To get started, watch this video so you know exactly what an AMM is:

 

 

My colleague Harold explains in this blog what an AMM is and how it works. This is what he says about it:

An AMM is an underlying DEX protocol that values cryptocurrency trading pairs through a mathematical formula. Such a trading pair could be ETH/USDC, for example. Unlike a traditional order book, where price is determined by the convergence of supply and demand, cryptocurrencies are valued by a price algorithm at an AMM.

What is DeFi?

This is actually quite a special blog, because you don’t just see substantive information about Raydium Protocol. Since there are so many things involved, I’ll also explain terms like AMM, DeFi, and Solana. This way you know exactly what is happening and whether you can do something with RAY.

DeFi stands for Decentralized Finance, as my colleague Jurgen explains in this article. Today, our regular financial system is centralized. This means that the banks, the government and all kinds of financial institutions are responsible for the policy surrounding our money. You need intermediaries, permission and registration for almost everything.

Due to the developments online, a decentralized system is getting closer. All transactions are faster, cheaper and more secure and the intermediary is eliminated. This allows you to manage your own assets and banks and the BKR have no interference. Isn’t that fantastic?

Raydium (RAY)

RAY’s basic tokenomics can be easily explained in a few points:

  • The hard cap = 555 million. This means that they want to collect a maximum of this amount during the ico;
  • Total mining reserve consists of 34% of all tokens;
  • 0.03% of all trading fees will be awarded to RAY strikers.

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How do I buy Raydium?

Raydium is not currently supported by any exchange. It is therefore not possible to buy the RAY coin. You can buy other good cryptocurrencies at Bitvavo. We currently think this is the easiest exchange to buy crypto.

  1. Register here for free at Bitvavo
  2. Verify yourself by clicking on your name in the top right corner and then go to ” Verification “.
  3. Transfer money via iDeal. You do this by clicking on ” Deposit Euros “.
  4. Then enter the amount and choose iDeal as payment option so that the money is in your Bitvavo account within a minute. Then click on “Pay”.
  5. If you click on ” Overview ” afterwards, you will see the money.
  6. Find a cryptocurrency, click on it and then press “Buy”.
  7. Invest the amount you have in mind in the coin.
  8. Congratulations! You have bought your first cryptocurrency!
    Don’t forget to save your username and password

SPL Wallet

Before you can get started on Raydium’s platform, you need a Solana Program Library (SPL) wallet. Here you can store your credits, communicate with Raydium and use the Solana blockchain. You must have SOL in your wallet to complete transactions.

These are wallets that are also recommended:

  • Phantom is a user-friendly wallet and browser extension, which has a super simple interface. New users will enjoy navigating this;
  • Sollet.io is an SPL wallet built by the team behind Serum.

About serum

There are several ways to trade on Serum. I’ve been talking about Serum’s integration on the Solana blockchain all along, but what value does it add in terms of trading?

Serum uses shared liquidity. It may just be that you use an application to trade on the platform, while someone else uses a completely different application. But you use the same pool.

This is a very powerful way because it bundles the entire liquidity in one place and is accessible to all other applications on Solana.

Serum’s ecosystem is extensive, as you can admire below. Have you spotted Raydium yet?

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Trade & Swap Raydium

Naturally, Raydium is able to provide a powerful trading experience to its users. The possibilities are comparable to those of a centralized exchange (CEX), thanks to the integration with Serum.

Are you looking for a platform with the full experience? Do you want charts, order books and reliable limit orders? Then you are in the right place with this DEX!

Do you prefer a quick and easy swap option? Any SPL token can be quickly exchanged for another token, thanks to RaydiumSwap. You can easily see whether trading in via a liquidity pool or via Serum is the most attractive option for you. Satisfied? Click and run!

Raydium’s liquidity comes from its own liquidity pools, but also from Serum’s extensive order book. Less slippage and more liquidity for Raydium Protocol users!

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Swapping costs

But what about the costs? When you make a swap in Raydium’s pool, the transaction is charged with a 0.25% fee. This is broken down as follows:

  • 0.22% is returned to the pool and rewards liquidity providers;
  • 0.03% they send to the staking pool. So this is a reward by the users who stake their RAY tokens.

Are you making a swap via Serum? Then you only pay the transaction fee to them. This standard fee is 0.22% and decreases the more you trade. In addition, you have to pay a network fee in SOL. Most transactions cost between 0.0001 and 0.001 SOL.

Strikes from RAY

If you want to earn extra RAYs, you can think about staking. Staking is locking your coins for a longer period of time so that the platform can use it to grow. You earn money by staking, as clearly explained here.

You can learn more about discontinuing Raydium and Serum in the video below:

 

AcceleRaytor

They earn points for the name alone, don’t you think? AcceleRaytor is an initiative of the platform to accelerate the growth of the Solana (SOL) ecosystem. It serves as a launch pad for the latest projects, allowing them to raise capital to generate initial liquidity in a decentralized and interoperable manner.

AcceleRaytor launches in pools, where you as a user can invest money. This collects tokens from the relevant project. This is a great way to stay informed and find investment gems. Do you want to participate and view the pools? Check it out here.

Community

Raydium Protocol has several social media channels, where they keep in touch with their fans. They are quite active themselves and like to connect with others. This is also reflected in the numbers on the various channels, because the community clearly appreciates these updates. For starters Telegram. At the time of writing (February 2022) they have a fan base of over 26k there. They are also active on Discord and they have no fewer than 44k members there, so there are already a lot more. When I just took a look, more than 10% was actually online, so it’s alive and well.

You can read their articles on Medium. I myself am a fan of this platform in general, because you will find information there that you will not find on the Dutch-language news sites. Not only the news, but also the knowledge base behind it. Very nice! Will you help them get the 13k followers there?

I’ve talked about Twitter before. Their bio says ‘ An on-chain order brook AMM powering the evolution of DeFi ‘. You can receive daily updates and view new features there, along with 290k others. Twitter is head and shoulders above the rest of the channels, as seems to be the case with most crypto projects.

Conclusion

In my opinion, Raydium has potential. The platform has endless possibilities, they work together with strong partners and have all the benefits you want. Safety, speed and affordable trading. The great thing is that everything looks very refined and the user-friendliness is perfectly fine. You can surf through all the components and all actions are performed completely intuitively.

Expectations for the altcoin are therefore high, but remember: always do your own research. Never rely on someone else’s opinion or gut feeling and invest in your own knowledge.

Do you have any questions about Raydium or other concepts that came up in this story? In our FAQ you will find the answers quickly and easily. What also works well is to google your question + ‘AllesOverCrypto’. There is a good chance that we have already written an article in the past about the subject that you would like to know more about. Do you want to talk more about Raydium and the different applications or expectations? Register quickly with our AllesOverCrypto Facebook group! Here, our crypto and blockchain experts are ready to answer your questions. Will I see you there?

Header image: Twitter Raydium

 

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