Raydium is an automated market maker (AMM) built on top of the Solana blockchain. It provides an on-chain liquidity to the Serum decentralised exchange therefore allowing access to the order flow and liquidity of the Serum ecosystem. Many decentralised exchanges face huge barriers in moving forward. These include steep gas fees, slow confirmation time, inexistence of order books and no traditional charts for technical analysis. Raydium addresses these problems in a number of ways. By leveraging Solana blockchain, gas fees and confirmation time are reduced significantly. Since Raydium provides an on-chain liquidity to Serum central limit order book, users can have similar trading experience with centralised exchange.
The RAY token is the native token used within the Raydium ecosystem. There is a hard cap of 555 million RAY tokens. When users trade using Raydium pool, stakers and liquidity providers will be awarded RAY tokens from the transaction fees.