When it comes to Automated Market Makers (AMMs), most people are familiar with Uniswap on Ethereum. However, Raydium stands as the largest and most recognized AMM platform within the Solana ecosystem. Beyond simple token swaps, Raydium offers features like Farm (liquidity mining), Acceleraytor (Initial DEX Offerings), and Staking. Leveraging Solana’s high-speed, low-fee infrastructure and sharing liquidity with Serum, Raydium has attracted significant attention and is considered a promising DeFi platform.
This guide will walk you through how to use Raydium, from basic swaps to advanced yield farming.
Getting Started with Raydium
To begin using Raydium, you’ll first need a Solana-compatible wallet. While several options are available, this guide uses Sollet, one of the earliest web-based wallets for Solana.
Start by visiting the Raydium platform and clicking the "LAUNCH APP" button.
Next, select "Connect" located in the upper-right corner to link your wallet.
Choose "Sollet" from the list of supported wallets (or another wallet if you prefer).
A Sollet pop-up will appear prompting you to enter your wallet password.
After entering your password, confirm the connection to Raydium by clicking "CONNECT".
Once connected, your wallet address will appear in the top-right corner. Keep the Sollet window open in the background during your session.
How to Perform a Swap
The Swap feature is Raydium’s most basic function, allowing you to exchange one token for another.
Here’s a step-by-step example of swapping SOL for RAY:
In the top field, select SOL and enter the amount you wish to swap.
In the bottom field, select RAY. The system will automatically display the amount you’ll receive based on the current exchange rate.
Pay attention to the Price Impact indicator. If a token has low liquidity, high slippage may occur, meaning you receive fewer tokens than expected. A value of 0% indicates sufficient liquidity.
Click "Swap" once you’re satisfied with the terms.
Confirm the transaction by clicking "APPROVE". The bottom-left corner will show a "Transmitting" status, which typically completes within seconds.
After completion, your RAY tokens will appear in your wallet. If they don’t show immediately, click the refresh icon (highlighted in the upper-right) to update your balance.
Farm & Fusion: Liquidity Mining Explained
Raydium offers two primary avenues for liquidity provision: Farm and Fusion. Farm pools are long-term, while Fusion pools are often created for new tokens to boost liquidity and may offer higher yields—though they also come with greater volatility.
Both Farm and Fusion operate similarly. Below, we use the RAY-SRM LP Farm pool as an example.
Adding Liquidity
Adding liquidity means depositing your tokens into a pool. In return, you receive LP (Liquidity Provider) tokens, which you can then stake to earn rewards.
Select RAY in the top field and SRM in the bottom field.
Enter the amount of RAY you want to supply; the system will show the required amount of SRM.
Click "Supply".
A Sollet window will pop up for confirmation. Click "APPROVE".
Once the transaction is confirmed (indicated in the lower-left corner), you’ll receive your LP tokens.
Navigate to the Farm page, find the RAY-SRM LP pool, and expand it.
Click "Stake LP".
Enter the amount you wish to stake and click "Confirm", then approve the transaction via the Sollet pop-up.
You’ve now successfully staked your LP tokens! Rewards will accumulate under "PENDING RAY REWARD"—click "Harvest" to claim them.
Removing Liquidity
To exit a liquidity pool, you must first unstake your LP tokens and then remove them to reclaim your original tokens.
Click the "－" (minus) icon in the staking section.
Enter the amount to unstake and click "Confirm", then approve via Sollet.
Go to the Liquidity page and scroll down to "Your Liquidity". Select RAY-SRM.
Click "Remove".
Specify the amount to withdraw and confirm the transaction. Once processed, your original tokens will be returned.
Staking RAY Tokens
The Staking section allows you to stake RAY—the native token of Raydium—and earn additional rewards.
How to Stake
On the Staking page, locate and expand the RAY pool.
Click "Stake RAY".
Enter the amount you wish to stake, click "Confirm", and approve the transaction via Sollet.
Your staked RAY will now be visible in the interface.
Unstaking RAY
To unstake your RAY tokens:
Click the "－" icon in the staking panel.
Enter the amount to unstake, confirm, and approve the transaction.
Your RAY tokens will be returned to your wallet.
Acceleraytor: Participating in IDOs
Raydium’s Acceleraytor platform hosts Initial DEX Offerings (IDOs). The allocation mechanism has recently shifted from a fair-distribution model to a lottery-based system. Eligibility and ticket numbers are determined by the amount and duration of RAY staking.
For example, in the recent SLRS IDO:
- Staking RAY for 7+ days granted 1 ticket per 100 RAY (max 5 tickets).
- Staking for 30+ days granted an additional 1 ticket per 50 RAY (max 5 tickets), plus 1 extra ticket per 1,000 RAY.
- Each ticket represented an allocation worth 50 USDC.
So, if a user staked 1,000 RAY for 30 days, they would receive 5 tickets from the 7-day rule, 5 from the 30-day rule, and 1 extra ticket for holding 1,000 RAY—totaling 11 tickets.
During the IDO window, users commit USDC equivalent to their tickets. After the lottery, winning tickets receive token allocations, and unused USDC is refunded.
IDO rules vary per event, so it’s essential to follow Raydium’s official channels for the latest updates.
Frequently Asked Questions
What is Raydium?
Raydium is a decentralized exchange and automated market maker built on the Solana blockchain. It offers token swaps, liquidity mining, staking, and participation in initial token offerings.
How do I connect my wallet to Raydium?
Click "Connect" in the top-right corner, select your wallet (e.g., Sollet), enter your password, and approve the connection. Ensure your wallet remains accessible in the background.
What is the difference between Farm and Fusion pools?
Farm pools are permanent liquidity pools with steady rewards. Fusion pools are usually temporary and created for new tokens to bootstrap liquidity—they often offer higher yields but come with increased risk.
How can I maximize my IDO ticket allocation?
Stake more RAY for longer periods. Tickets are based on both the amount and duration of staking. Always check the specific rules for each IDO.
Is providing liquidity on Raydium safe?
While Raydium is a reputable platform, liquidity provision carries inherent risks, including impermanent loss and smart contract vulnerabilities. Always assess the risks before participating.
Why is my transaction taking so long?
Solana typically processes transactions in seconds. If you experience delays, check your internet connection or Solana’s network status. Refreshing the page or reconnecting your wallet may help.
Conclusion
Raydium has established itself as a leading DeFi platform on Solana, offering a comprehensive suite of services including swapping, farming, staking, and IDO participation. Its integration with Serum and utilization of Solana’s high-performance blockchain make it a compelling alternative to Ethereum-based AMMs.
However, like all DeFi activities, using Raydium involves risks—especially when providing liquidity or participating in IDOs. Always conduct thorough research and never invest more than you can afford to lose.
For those looking to explore more strategies in decentralized finance, Raydium offers a powerful starting point on the Solana network.