Support the order book AMM protocol Raydium, take a look? | DeFi Hunter

This article is an original piece by Chain Catcher, authored by Gu Yu.
DEX is one of the most important components of the DeFi ecosystem. AMM-type DEXs experienced explosive growth last year, but almost all AMM projects can only access the liquidity in their own pools and cannot access a central order book, nor use features like limit orders.
The AMM protocol Raydium, built on the Solana blockchain, attempts to solve this problem. According to a Medium blog, the project was launched in the summer of 2020 and recently went live, with the main feature being the creation of an AMM mechanism that supports an order book model, providing better liquidity for the DeFi ecosystem.
It is understood that Raydium's order book function mainly relies on Serum, which provides on-chain liquidity for the central limit order book of Serum DEX. This means that Raydium allows access to the order flow and liquidity of the entire Serum ecosystem. In other words, Raydium's liquidity comes not only from its own liquidity pool but also from the Serum orders shared by all Serum users. According to Chain Catcher statistics, the total locked amount in Raydium AMM pools is approximately $61 million, with a 24-hour trading volume of $5.4 million.
On February 22, developer Handroll posted a proposal on the SushiSwap forum, suggesting the integration of SushiSwap with Raydium's platform to establish support for liquidity pools and collateralize on the Solana-driven Serum DEX. After a testing period on Raydium's testnet, the team can explore deploying Bonsai on Solana's mainnet.
This news also directly stimulated a significant increase in the price of the Raydium token RAY. According to Coinmarketcap data, the current circulating supply of Raydium token RAY is 11.27 million, with a market price of $12.66 and a circulating market cap of $142 million.
Currently, Raydium's main interface has four functional modules: Trading, Swap, Pool, and Farm. Among them, Trading is the order book trading page, supporting users to trade using limit orders, market orders, etc., but currently lacks a price candlestick chart. Swap refers to the AMM trading function, and the page is very similar to other AMM projects, allowing users to conduct automated matching trades using tokens.
Pool refers to the liquidity pool, where users can choose trading pairs to add liquidity and earn LP tokens. Users can stake LP tokens on the Farm page to earn RAY token rewards. Currently, LP staking is supported for the three major trading pairs: RAY-USDT, RAY-USDC, and RAY-SRM, with the current annualized APY ranging between 400-500%.

In terms of the token economic model, the total issuance of RAY tokens is 555 million, of which 187 million (34%) is used for mining output, 166 million (30%) is used for partnerships and ecosystem, and 111 million (20%) belongs to the team. The token release will continue for 36 months, with the release amount halving every 6 months.
At the same time, Raydium will charge a 0.25% fee on each transaction on the platform, of which 0.22% is reinvested into the liquidity pool as a reward for liquidity providers, and 0.03% is sent to the staking pool as a reward for RAY token holders.
In terms of future planning, Raydium plans to collaborate with other protocols to research more market-making models and functions, while utilizing external oracles to improve the market-making mechanism, and cooperate with the newly launched Serum lending protocol to enable Raydium to increase margin trading capabilities, thereby releasing more liquidity from on-chain assets.