Buy Raydium (RAY)

In February 2021, Raydium (RAY) was launched. The crypto market was introduced to an Automated Market Maker (AMM) on the Solana blockchain. An AMM is a technology that simplifies crypto trading. It makes it possible to exchange crypto coins without using a ledger. As a result, there is no dependency on direct supply and demand on the market.

Raydium serves a dual role, as it is both an AMM and a yield farming platform. The latter means that investors can earn crypto by providing liquidity to the AMM pools. Based on their stake, these liquidity providers receive a reward in the form of crypto. It is also possible to generate income through staking, or locking tokens in a smart contract for a certain period of time. Users decide for themselves how many coins they lock up.

Raydium is known for its partnership with decentralized crypto exchange Serum. The platform uses the DEX’s central order book to offer users more trading options, fast transactions, and shared liquidity. The combination of liquidity pools with Serum’s order book significantly reduces the impact of price differences, which often works out favorably for investors.

Who founded Raydium?

Raydium was founded by three individuals using the pseudonyms AlphaRay, XRay, and GammaRay. While their true identities are a mystery, we know the trio has extensive experience in blockchain technology and algorithmic trading. For example, AlphaRay was involved in algorithmic commodities trading before launching RAY. In 2017, he transitioned to the crypto industry, where he applied his knowledge of liquidity provision and market making to Raydium (RAY).

Together with the other two founders, AlphaRay came up with an innovative platform for automated market making and liquidity provision: Raydium. The collaboration between the platform and the decentralized crypto exchange Serum has played an essential role in this to date.

The Solana network is known for its fast transaction times and low fees. It is currently capable of processing over 65,000 transactions per second. Meanwhile, the network’s block times are around 400 ms and transaction fees are very low. This gives Raydium (RAY) users the opportunity to trade crypto quickly, efficiently and affordably. Raydium’s platform also offers the following use cases:

• Swaping: Swap tokens via Serum in seconds, including advanced trading features such as limit orders.
• Yield farming: Also known as Dual Reward Farming. Liquidity providers earn a reward when they stake tokens on Raydium’s platform. In this case, they receive RAY tokens.
• Staking: Locking tokens in a smart contract for a certain period of time for a fee. Similar to Yield farming, one receives RAY tokens as a ‘reward’.

One of Radium’s goals is to grow the Solana (SOL) ecosystem. To achieve this, AcceleRaytor was created. This is a launchpad for new projects. The idea is that users deposit digital currency into pools. In return, they receive tokens from the project they invest in. By raising sufficient capital, new crypto and blockchain projects generate sufficient liquidity in their start-up phase.

Liquidity pools are at the heart of Raydium (RAY). Users, known as liquidity providers, deposit crypto tokens into these pools. These assets are locked in smart contracts and then function as trading pairs. The tokens in the pools act as a counterparty to transactions that take place on the platform. In short, Raydium users can buy and sell assets against a pool filled by liquidity providers.

Automatic algorithm

On a traditional crypto exchange or stock market, buy and sell orders are listed in an order book. The book connects buyers and sellers. Raydium does not do this because it uses liquidity pools. The platform also uses an automatic algorithm to determine exchange rates and ensure fair transactions.

Raydium has its own utility token called RAY. This digital currency plays a key role within the platform and offers users the following possibilities. By staking RAY it is possible to generate additional income. In addition, there is protocol governance, meaning every RAY token holder can vote on possible proposals from the community and/or adjustments within the ecosystem. This is known as the governance model.

Another application of the RAY token is providing liquidity. Users receive RAY as a reward for filling Raydium’s liquidity pools, and this is also known as Yield Farming.

RAY’s ecosystem also offers users the opportunity to receive IDO allocations. IDO stands for ‘Initial Dex Offering’ and is a method of raising funds when launching a new coin or token on a decentralized exchange (DEX).

Currently, Raydium has a hard cap of $55 million. The total mining reserve is 34 percent of all tokens. In addition, RAY stakers are awarded 0.03 percent trading fees.

Staking is the locking of crypto tokens for a longer period of time. Tokens are locked in a staking contract via various wallets that support Raydium. Investors have various reasons to stake RAY. It’s a way to support the platform, as users help strengthen the network’s security and assist in validating transactions.

In addition, token holders are allowed to vote on certain proposals within the Raydium network (the governance model). In this way, the community exerts influence on decision-making. Finally, token holders receive a reward for staking. This stimulates participation in the network and at the same time contributes to its security and survival.

Raydium distinguishes itself from other DeFi protocols and AMM decentralized exchanges in several ways. Typically, a DEX only has access to liquidity within its own pool. There is no access to a central order book. Raydium does have this through the integration with Serum. These features also make this AMM on the Solana blockchain unique:

• Raydium uses Serum's central order book to guarantee fast transactions and shared liquidity.
• The platform is built on the Solana blockchain. As a result, transactions take place faster and the fee is much lower than on the Ethereum network.
• Raydium's user interface is simple and clear giving crypto investors the choice of different trading options and quick access to a specific TradingView chart.

Raydium (RAY) can be purchased at Bitvavo. Our platform is suitable for both novice and experienced traders. Follow these steps to buy RAY via our website or mobile app:

1. Register or log in to your Bitvavo account.
2. Make a deposit by clicking "Deposit".
3. Go to the Raydium purchase page to see how much the token costs.
4. Specify the amount in euros you want to invest or the amount of Raydium you wish to purchase and click "Buy".

The cost of Raydium tokens is directly linked to the price level. After purchase, the RAY tokens are automatically added to your Bitvavo account, where you can easily manage and trade them. This allows you to respond faster and more accurately to current market movements. You can also see at a glance how much the crypto coin is worth. Keep a close eye on the news to stay informed of developments in the crypto market.

Want to store Raydium tokens in a secure way? This is easily done in your Bitvavo account. The exchange stores the majority of its customers' credit in secure and offline cold storage. Despite the security measures, it is wise to use two-factor authentication (2FA) as an additional security measure. This means that in addition to a password, you enter an extra code when logging in.

Activating 2FA is easy. Simply download Google Authenticator and link the app to your Bitvavo account. A code will then appear on the screen with which you can log in. This code changes after a minute to guarantee 100% security.