Raydium

Raydium is one of the original and most important automated market makers (AMMs) on Solana, serving as core liquidity infrastructure for the entire ecosystem. As both a DEX and liquidity provider, Raydium powers a significant portion of Solana's on-chain trading volume. Raydium operates two main products: its standard AMM pools and concentrated liquidity pools (CLMM). Standard pools use the classic x*y=k formula and are the backbone for new token launches on Pump.fun and other launchpads — when tokens graduate from bonding curves, they typically create their initial liquidity on Raydium. Concentrated liquidity pools allow LPs to focus their capital within specific price ranges for higher capital efficiency and better returns. The platform also features AcceleRaytor, a launchpad for new Solana projects, and a comprehensive token creation tool that lets anyone deploy a new SPL token and create a liquidity pool in minutes. Raydium's deep integration with the Serum/OpenBook order book historically provided an additional layer of liquidity, combining AMM liquidity with order book depth. Raydium's RAY governance token accrues value through protocol fee sharing and staking rewards. Liquidity providers earn trading fees plus RAY incentives on select pools. The protocol processes substantial daily volume and has been instrumental in making Solana competitive with Ethereum-based DEXs. For new token creators, Raydium remains the default venue for establishing initial trading pairs.