Raydium is one of the oldest and largest automated market makers (AMMs) on Solana. Users swap tokens against liquidity pools and can provide liquidity themselves to earn a share of trading fees. Raydium offers classic pools, concentrated liquidity, and token-launch tools.

What is the difference between standard pools and CLMM on Raydium?

In classic pools, liquidity spreads across the entire price curve. With concentrated liquidity (CLMM), providers deposit capital within self-chosen price ranges — where it works more concentrated and earns more fees, but must be managed more actively.

LaunchLab is Raydium's tool for token launches: projects can bring new tokens to market with liquidity. As with all launch mechanics, caution applies — early tokens carry high risks (see rugpull).

What is the RAY token?

RAY is the token of the Raydium ecosystem, used among other things for governance and incentive programs. This article is explanation, not financial advice.

Raydium explained: AMM, concentrated liquidity, and token launches on Solana

Raydium is one of the founding building blocks of Solana DeFi and remains one of its central liquidity sources — including for aggregators like Jupiter that tap Raydium pools in the background.

In plain terms: Raydium is a marketplace where you swap tokens directly against a liquidity pool. Whoever puts liquidity into the pool earns a share of the trading fees.

What Raydium offers

Classic AMM: swap against liquidity pools; liquidity providers earn a share of fees.
Concentrated liquidity (CLMM): capital in self-chosen price ranges — higher fee efficiency with more active management. For the latest extensions, see the CLMM Maker Suite.
LaunchLab: tools for token launches with liquidity.

How Raydium fits the ecosystem

Raydium is a liquidity source, not an aggregator. A swap via Jupiter often lands partly in Raydium pools, because Jupiter seeks the cheapest path across many DEXes. Trading directly on Raydium mainly makes sense when you specifically want to interact with its pools or provide liquidity.

Risks to keep in mind

Impermanent loss when providing liquidity, especially for volatile pairs.
Early tokens / launches carry elevated risks — from thin liquidity to rugpull.
Smart-contract risk as with any DeFi protocol.

At a glance

Raydium is one of the oldest/largest AMMs on Solana.
Offers classic pools, CLMM, and LaunchLab.
Is a liquidity source that aggregators like Jupiter tap.
RAY is the ecosystem token.

Not financial advice. This article explains a DeFi protocol.

Sources and further reading

Raydium — raydium.io · Raydium documentation
SOLANA·HUB news: Raydium CLMM Maker Suite
SOLANA·HUB glossary: Liquidity Pool · DEX · Slippage · Rugpull

Solana DEX comparison — Raydium next to Orca, Meteora & co.
Jupiter explained — the aggregator that uses Raydium liquidity
DeFi on Solana — the overview