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How Raydium works | Solana Staking

In this post, we are going to see how raydium works in detail, the most used Exchange defi of the Solana network.

What is Raydium?

After the great popularity that solana has had, there has been a lot of interest in how its network works and how you can use an Exchange defi from this network. Raydium is the most popular, and you could say it is like the pancakeswap of the binance Smart chain in the solana network.

Here, we are going to see everything you need to know to be able to use this Exchange, since the solana network is somewhat new and you may not know where to start if you are totally new. In this case, if you follow the steps in this video, you will get out of all your doubts.

Solana network wallet

So let’s get started. The first thing we are going to need, like any DEFI Exchange, is a wallet. In the case of solana, there is not yet the option to configure the network in metamask, so we are going to need to use another wallet to use Raydium. There are different options, but I am going to use Sollet, which is the most common and easy to use, with a google Chrome extension, and a very similar operation to the metamask wallet. So, if you have used any wallet, I’m sure you will have no problem understanding how Sollet works.

Sollet Wallet

To create your wallet, go to the links below or search for sollet wallet and follow the steps. Save in a safe place the creation code and once you have it, enter it to create your wallet. In my case, I already have it created, and you just have to enter the password you have indicated to see your wallet. I recommend that, if you have created it on their official website, add the Chrome extension to be able to use it more easily.

When you open your wallet, you will see the solana token and you can add new tokens in add token from the solana network. Also, you can create multiple accounts to have different wallets in the same account for more security. In add account and simply click on add and you will have another wallet to use in the same account.

To use the solana network and wallet, you are going to have to have solana to pay the commissions, in the same way that happens with the ethereum network. For that, let’s see how you can withdraw solana from binance or another Exchange to your wallet to start using it. In my case I use binance, you can find a link in the description if you don’t have an account with binance.

Withdraw Solana from Binance

I will leave you a video of how to buy solana in binance, and we go straight to how to withdraw it. You can watch it step by step in the video below or in written form after the video.

Platform: Binance
Min. deposit: $10
License: Cysec

Very low commissions
Exchange with more cryptocurrencies

5/5

To do this, we will go to wallet, spot wallet, and look for the solana token. Here, click on withdraw or withdraw. Open the wallet and copy the recive address of the Solana token, paste it in binance, indicate the amount you want to withdraw and the solana network. Enter the passwords, and click withdraw. The commission is 0.01 solana, really low. In a few minutes you will have solana in your wallet, plus it is a really fast network. With solana in your sollet wallet, we can start using Raydium.

We open rayidum, and click on launch app. Here, first we must connect our wallet to raydium to be able to use it. Click on connect, and sollet extension, and click on connect to wallet. As you can see above, it is already connected.

Raydium Swap

The first and most used feature of raydium is the swap. Where you can exchange the cryptocurrencies you want for different pairs, in from indicate the cryptocurrency you want to use and in to the cryptocurrency you want to get. Most probably if you search for the name you will get the cryptocurrency. If not, copy the solana contract to see if it detects it. Once you check that everything is correct, click on swap and confirm the transaction in the wallet and you will have the tokens exchanged. The commission is really low, as you can see in solana explorer, and we are going to convert it to dollars so you can see how little it cost. Remember to have solana to pay the commissions in your wallet, or you won’t be able to use raydium or make any transactions with your wallet.

The commission is less than a cent, so with 5 dollars or less of solana you can have enough for a lot of transactions.

Trading in Raydium

Swap is the main function of raydium, but there are also other interesting features. In trading, raydium allows you to trade like a centralized Exchange but being totally decentralized, where you can trade the main cryptocurrencies of the solana ecosystem with its pair in usdt or usdc, and trade in this tab.

Liquidity Raydium

Let’s take a look at the liquidity part. Here, you can create an LP token and bring liquidity to raydium in exchange for an annual % of that LP token. It is a way to passively generate more tokens, although it has the risk of impermement loss, if you do not know what it is, I’ll leave you a video before you jump to provide liquidity in raydium or other sites. Later, we will see how you can contribute liquidity to raydium with an example.

Pools

In pools, we find the different pairs of liquidity that we can contribute in liquidity and that later we will see how, with the annual % that we will receive, in addition to the volume and the amount of liquidity in dollars that there is in each pair. Keep in mind that the annual % are not fixed, and they are changing almost every day, so that, although a pair has a high percentage, it does not mean that it is going to be maintained during the time. Here, mainly it can serve you if you want to provide liquidity to decide which pairs there are, and what profitability they are giving at the moment.

Farms

In farms, it is very similar to pools, but with different pairs that you can stake in exchange for rewards. Although in farms, all the pairs are with raydium, unlike in pools, where you could find pairs that did not include raydium. The same operation as in pools, you can see the annual % that you will receive for staking the different pairs, and once you have the LP, simply go to the pair you have created, click on stake LP and you will have it generating passive income. When you want to withdraw it, you can click on harvest and only withdraw what you have generated, or what you have generated and what you have staked.

Fusion Pools Dual Yield

We continue with fusion pools, very similar to what we have seen with farms. But with new pairs and a different way to receive rewards. Here you will find pairs with raydium, and pairs with cryptocurrencies and a stablecoin. Here, they are usually new solana projects, where for staking an LP, instead of receiving more LP tokens, you receive directly tokens of that cryptocurrency. And in some dual yield pools, you will receive a % in the token of that cryptocurrency, and another % in the raydium cryptocurrency. So you are going to receive two different cryptocurrencies for staking in for example, fida-ray, with a high percentage of fida and a lower percentage of raydium. Here, you will see that the annual percentages are higher than those you find in farms, since they are new projects and usually need more liquidity than older projects. So it is an interesting place to look for good farming opportunities.

Raydium Staking

We continue with staking, here you will simply be able to stake the raydium you have in exchange for an annual percentage and some advantages that we will now see. In this case, you only need raydium, you don’t need to make a LP token to stake. As you can see, now the annual % is about 35%, but it varies. And I have some ray stakeando. Besides receiving an annual % of raydium for staking them here, it will also allow you to participate in launches of new projects that are made on the platform, which is the most interesting aspect to have raydium staking.

How to participate in Acceleteraytor

On acceleteraytor, you will be able to see new and old releases. To participate in them, you will need a minimum of raydium staked on the platform, as we have just seen. In the case of the latest release, mercurial, if we click and scroll down, we see the requirement to participate in the release and be able to get the tokens, in this case it was 50 ray to be eligible to buy some mercurial tokens.

In the oldest launch on average, it was 20 ray to participate, so in the next launch, which is not yet known what it will be or when, it is likely to ask for a larger amount of raydium to participate stakeada. Once you are valid to participate, you will have to place USDC in the pool, and you will receive a % of the pool and they will exchange the USDC for the tokens, in this case mercurial. But even if you put 500 usdc for example, it does not mean that you will receive the equivalent of 500 usdc in mercurial tokens, because if there is a lot of participation, the % you receive is lower, and the usdc will be exchanged for the equivalent of the tokens received.

This launchpad is very interesting if you get a good amount of new tokens in its launch. if we look at the average, if you participated in the launch, each token cost you 10 dollars, and at the time that the token was launched publicly, it reached more than 200$. So as you can see, they are a great opportunity if you get a good % of these tokens.

So if you want to participate in new launches in raydium, you have to be aware of when they announce a new launch on their platform, and what requirements you will have to participate in it.

How to provide liquidity in Raydium

Finally, let’s see how you can create an LP token, and provide liquidity in raydium. I am going to do it with the Solana USDC pair. To do this, you need to have the same amount of USDC and Solana in your wallet. Once you have the equivalent of the current price of Solana and USDC, or the pair you want to provide liquidity, click on supply, confirm the transaction in your wallet, and you are ready to go. Below, in your liquidity, you will see your LP Token with all the information. When you want to withdraw it, simply click on remove, and you will have the tokens shown in pooled at the current moment. Before contributing liquidity, find out what is the impermement loss to avoid surprises when you go to withdraw your LP Token and the prices of the cryptocurrencies you placed have fluctuated a lot.

I hope you have learned more about raydium and now you know how it works perfectly. Remember that if you don’t have an account with binance to buy solana, you can create one just below.

Platform: Binance
Min. deposit: $10
License: Cysec

Very low commissions
Exchange with more cryptocurrencies

5/5

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