In the first half of 2022, the encryption market ushered in a wave of decline, and changes in the market also caused some people to worry about DeFi. In fact, although DeFi has experienced a severe test, it has not fallen and there is still great potential. Judging from recent performance, DeFi has begun to gradually recover, and people's concerns about DeFi are also changing.
In addition, a large number of projects have returned to zero after being hyped, and coupled with various incidents of currency freezing and account freezing in centralized exchanges, many investors have also realized that DeFi has a real demand in the market. Many traditional financial circles have also begun to study DeFi, and some DeFi applications are also constantly attracting attention. Solana, as a gathering place for DeFi projects in the encryption industry, has seen the emergence of a wide variety of innovative projects that have attracted financial attention since last year, among which the most The one that gets the most attention is Raydium.
Solana DeFi Ecosystem Pioneer
Speaking of Raydium, I believe everyone who follows Solana knows its influence. According to the official introduction, Raydium is the first AMM liquidity market-making DeFi project in the Solana ecosystem. Its TVL has occupied the first place in the Solana DeFi market until now and plays a decisive role in the entire Solana ecosystem!
Currently, Raydium mainly includes functions such as DEX trading, AMM Swap exchange, liquidity mining pool, mining farm, staking, Acceleraytor project IDO, DropZone NFTs issuance and NFT trading market, covering the main activity modules of DeFi and NFT, among which the most Important transactions are made through the AMM market-making method combined with the Serum order book, which can provide users with the best liquidity support.
Raydium has also launched an ecosystem farm. The project team can set up incentive farm mining activities to encourage users to add liquidity to obtain Token rewards; Acceleraytor is Raydium's IDO platform. Users can obtain the number of tickets by holding SOLRAY, and then according to the The IDO quota will be determined by drawing lots to ensure the fairness of the IDO process and help users obtain early project dividends while the project completes its initial public offering.
It can be seen that Raydium is basically involved in most directions of the DeFi ecosystem, which further establishes Raydium’s leading position in the Solana ecosystem.
Speaking of Raydium, I believe everyone who follows Solana knows its influence. According to the official introduction, Raydium is the first AMM liquidity market-making DeFi project in the Solana ecosystem. Its TVL has occupied the first place in the Solana DeFi market until now and plays a decisive role in the entire Solana ecosystem!
Currently, Raydium mainly includes functions such as DEX trading, AMM Swap exchange, liquidity pool, mining farm, staking, Acceleraytor project IDO, DropZone NFTs issuance and NFT trading market, covering the main activity modules of DeFi and NFT, among which the most important The transaction is through the AMM market making method combined with the Serum order book to provide users with the best liquidity support.
Raydium has also launched an ecosystem farm. The project team can set up incentive farm mining activities to encourage users to add liquidity to obtain Token rewards; Acceleraytor is Raydium's IDO platform. Users can obtain the number of tickets by holding RAY, and then according to the The IDO quota will be determined by drawing lots to ensure the fairness of the IDO process and help users obtain early project dividends while the project completes its initial public offering.
It can be seen that Raydium is basically involved in most directions of the DeFi ecosystem, which further establishes Raydium’s leading position in the Solana ecosystem.
What makes Raydium’s DeFi foundation possible?
As the first AMM-based DeFi project in the Solana ecosystem, there are certain differences between Raydium and AMM market making on other chains such as Ethereum, such as Uniswap. Raydium adds advantages in product experience by integrating the liquidity of the Serum order book market. There are two main reasons for doing this:
The first is that the performance of the Solana chain can bear such demand, so that the transaction speed and handling fees have reached optimal conditions. For the DeFi market of other public chains, due to reasons such as gas and on-chain processing capabilities, the order book DEX is very It is difficult to develop. This is a very good opportunity for Raydium, and it is also the main reason why the Solana DeFi ecosystem can develop rapidly.
The second is the silky-smooth trading experience brought by Raydium's integration with Serum. The order book and AMM each have their own advantages, and when combined, they can obtain better slippage and trading depth, coupled with the accumulated huge user base , most projects on Solana are also willing to create LP pools on Raydium and encourage users to pledge, thus forming Raydium's huge TVL market value.
As of now, Raydium’s TVL is about 200 million US dollars. Although it has dropped from its peak period, its scale is still huge, and it still ranks first in Solana’s liquidity ranking.
As the AMM platform with the largest transaction volume in the Solana ecosystem, Raydium is actively developing functions such as IDO and Farm. The main core is to attract more users and funds to participate in the Solana ecosystem. More importantly, Raydium’s pace of continuous innovation has not stopped. , which will also further consolidate Raydium’s position in the market.
Some leveraged mining projects such as tulipTulip Protocol will choose LP on Raydium for pledge leveraged mining. This is mainly because the pool on Raydium has a high TVL and can withstand liquidation caused by market currency price fluctuations.
Ecosystem farm makes DeFi incentives easier
Ecosystem Farms Ecosystem Farms is a function that Raydium has recently laid out. Ecosystem Farms means that any team can create income farms and token issuance rules, and guide liquidity by providing rewards for any pool.
The project team can customize parameter settings, including liquidity, reward duration, reward APR, final reward for the farm, etc. This setting allows the project to quickly start liquidity incentive mining and dual mining incentives, etc., which is convenient for community users Get involved on Raydium.
Set up the farm as shown in the figure. We can set LP, reward Token type and quantity, and liquidity mining incentive time. In this way, the system will estimate the amount of rewards issued every day. Raydium charges 300 RAY to complete the creation of the farm and will pay this fee. Deposit into Raydium vault.
Since the setup of the ecosystem farm is relatively simple and the corresponding development costs of the project side are saved, liquidity mining on Raydium is relatively safe for users. At present, a large number of projects built on the Solana ecosystem are attracted to Raydium to create revenue farms. At the same time, relying on Raydium's current scale and market attention, this plays a key role in promoting Solana's DeFi application ecosystem.
Ecosystem Farms Ecosystem Farms is a function that Raydium has recently laid out. Ecosystem Farms means that any team can create income farms and token issuance rules, and guide liquidity by providing rewards for any pool.
The project team can customize parameter settings, including liquidity, reward duration, reward APR, final reward for the farm, etc. This setting allows the project to quickly start liquidity incentive mining and dual mining incentives, etc., which is convenient for community users Get involved on Raydium.
Set up the farm as shown in the figure. We can set LP, reward Token type and quantity, and liquidity mining incentive time. In this way, the system will estimate the amount of rewards issued every day. Raydium charges 300 RAY to complete the creation of the farm and will pay this fee. Deposit into Raydium vault.
Since the setup of the ecosystem farm is relatively simple and the corresponding development costs of the project side are saved, liquidity mining on Raydium is relatively safe for users. At present, a large number of projects built on the Solana ecosystem are attracted to Raydium to create revenue farms. At the same time, relying on Raydium's current scale and market attention, this plays a key role in promoting Solana's DeFi application ecosystem.
NFT issuance and market transactions
NFT became popular last year, and it still has high popularity in the market until this year. Currently, NFT still attracts the attention of many people. Raydium also laid out the NFT issuance and trading market as early as 2020 and established the DropZone market. Collaborated with Magic Eden.
Dropzone is an NFT issuance market built on Raydium. It allows investors to participate in the issuance of NFT by implementing invoicing and winning in a similar way to AcceleRaytor. This mainly solves the problem of robots jumping the gun during the issuance, thus ensuring the public issuance of NFT. fairness.
In addition, Raydium has also cooperated with Magic EDEN to establish an NFT trading market and share NFT trading liquidity with Magic EDEN. That is, NFTs with orders placed on Raydium can also see pending orders and trade on Magic EDEN. . This method also refers to the cooperation between Raydium and Serum. By sharing NFT transaction liquidity, it increases the market influence of both parties, while making it easier for users to trade NFT, further promoting the development of Solana's NFT ecosystem.
From the perspective of development and current overall layout, Raydium has continuously launched new functions to adapt to market development through keen insights into market needs. At the same time, it has taken advantage of TVL's long-term dominance to develop more functions and businesses. The benefits of this are At the same time, it provides users with better one-stop services for DeFi and NFT, increases user stickiness, and ensures their long-term activity.
For Solana ecological project parties, Raydium provides them with a complete development stage platform, from IDO to liquidity pool, from farm to NFT issuance and transaction, Raydium promotes the growth of Solana ecosystem through continuous innovation and creates A win-win situation. In other words, Raydium will not achieve first place through competition within the ecosystem, but by making the Solana ecosystem bigger and stronger, attracting more people and funds to participate, so as to harvest its own share of growth and achieve a win-win situation. , which has important reference significance for other DeFi projects on public chains.