As Solana continues to rise as one of the most scalable Layer 1 blockchains, its DeFi ecosystem is evolving at a rapid pace. Among its most prominent infrastructure projects is Raydium — an automated market maker and liquidity provider that has become a cornerstone of Solana DeFi. This week, we spotlight RAY, the native token of Raydium, which is fueling efficient, low-cost trading and yield strategies across the Solana ecosystem.
Launched in early 2021, Raydium is a high-performance decentralized exchange and AMM built on Solana, offering lightning-fast trades, deep liquidity, and seamless integration with Serum’s order book.
Today, we will cover the following topics:
– About Raydium
– How does Raydium work?
– Key Features
– Technical Analysis
– Why is RAY The Coin of the Week?
About Raydium (RAY)
What is Raydium?
Raydium is more than just an AMM. It’s a hybrid DeFi protocol that combines the best of both worlds: the capital efficiency of a traditional order book and the speed and simplicity of an AMM.
By integrating directly with Serum — Solana’s central limit order book — Raydium enables users to tap into shared liquidity while also enjoying the instant swaps typical of AMMs.
Beyond trading, Raydium also powers a full suite of DeFi products including yield farms, staking pools, token launches through its AcceleRaytor platform, and permissionless pools for new projects.
Its user interface is sleek, fast, and optimized for high-frequency trading strategies, while developers can also plug into its infrastructure for liquidity and price routing.
Dig deeper into Raydium whitepaper.
RAY Token
RAY is the native utility and governance token of the Raydium ecosystem. It plays a key role in incentivizing liquidity, securing the protocol, and empowering community participation.
RAY can be used to:
– Stake and earn a share of trading fees
– Provide liquidity in yield farming pools for RAY-based rewards
– Participate in IDO allocations via AcceleRaytor
– Vote on governance proposals and shape the future of the protocol
How does Raydium work?
Raydium’s core innovation lies in its hybrid design. Traditional AMMs create isolated liquidity pools where trades are executed based on token ratios.
Raydium enhances this by integrating with Serum’s full order book — enabling trades to be routed not only through Raydium’s pools but also through Serum’s aggregated liquidity.
AMM Pools
Users can swap tokens instantly through Raydium’s liquidity pools with minimal slippage.
Order Book Integration
When beneficial, Raydium routes trades to Serum’s order book, optimizing for better execution.
Yield Farming
Liquidity providers earn both trading fees and RAY rewards for supporting key trading pairs.
AcceleRaytor
A launchpad for new Solana-based projects that distributes tokens to RAY stakers and LPs.
Staking
Users can stake RAY to earn protocol fees and exclusive launch allocations.
Key Features and Use Cases
Hybrid Liquidity Model
Raydium’s unique dual approach enables traders to benefit from both AMM pools and Serum’s central limit order book. This means deeper liquidity, lower slippage, and better price discovery.
Solana-Native Performance
Thanks to Solana’s ultra-low fees and fast block times, Raydium offers near-instant swaps and high-frequency trading capabilities — a major advantage over Ethereum-based DEXes.
Yield Farming and Incentives
Users can earn RAY and other tokens by providing liquidity to supported pools. Many projects launching on Solana integrate with Raydium’s farming system to bootstrap liquidity and reward users.
Launchpad: AcceleRaytor
Raydium’s launch platform gives early access to promising Solana projects, allocating tokens to users who stake or farm with RAY — fueling innovation while rewarding the community.
Permissionless Pools
Developers can launch new token pairs with ease, tapping into Raydium’s liquidity infrastructure without gatekeeping.
DAO Governance
RAY holders can vote on fee structures, pool incentives, and protocol upgrades — aligning long-term development with community interests.
Technical Analysis
As per our last market outlook, altcoins have been overall bearish, trading within a falling channel.
RAY has also been following a similar pattern, trading inside a falling channel marked in red.
However, it is currently retesting the upper boundary of the channel, indicating that the bulls are gaining strength.
For the bulls to take full control and trigger the next impulsive move toward the previous major high at $4, a break above the last major high marked in red at $2.35 is required.
In the meantime, RAY could still retest the $1.5 support level, where we’ll be looking for short-term long opportunities.
Why is RAY The Coin of the Week?
Raydium is a vital piece of Solana’s DeFi infrastructure. It offers users and developers a one-stop shop for trading, liquidity, yield farming, and token launches — all backed by a fast, scalable blockchain. Its hybrid design solves key issues in AMM-based DEXes by combining capital efficiency with speed.
From a technical perspective, RAY has been retesting the lower bound of its range, making it attractive to investors interested in the Solana ecosystem.
This week, we explored RAY, the native token of Raydium — a high-speed decentralized exchange and liquidity protocol built on Solana. By combining automated market making with order book integration, Raydium delivers deep liquidity, ultra-fast trades, and seamless DeFi tools that power the next generation of decentralized finance in a scalable, low-cost environment.
Thanks for tuning in to this week’s coin of the week! We appreciate your readership and enthusiasm for exploring the crypto landscape with us.
See you next week for another coin of the week! 🚀
