Raydium Crypto Economy Design Analysis Report Raydium is a non-custodial DeFi protocol that provides swaps, liquidity pools, concentrated liquidity positions, token launches, and farming/staking on Solana. The official documentation describes Raydium as a set of Solana on-chain programs covering AMM v4, CPMM, CLMM, Farm/Staking, LaunchLab, Perps, and API/SDK. Raydium Docs states that OpenBook integration in AMM v4 is currently disabled, and CPMM is recommended for new pools. (Raydium Docs) 1. AMM v4 on-chain state mapping: Existence. Sharing is disabled and operates based on the AMM path. Function: Provides swap, LP fee accumulation, and withdrawal functions for legacy high-liquidity pairs. 2.
Investment View
Fee-dependent risk RAY buyback and treasury revenue depend on trading volume. If trading volume decreases, LP profits, buyback, and treasury may weaken simultaneously. 3. LP loss risk AMM·CLMM LP bears the risk of impermanent loss, range departure, long-tail token volatility, and TVL departure after compensation ends. 4. Product complexity risk As AMM v4, CPMM, CLMM, Farm, LaunchLab, and Routing coexist, integrators and users must verify the correct program ID, fee denominator, Token-2022 processing, and pool config. 5.
Raydium launched in 2021 as a DEX combining Solana-based AMM and OpenBook-based CLOB liquidity, and has now expanded to Solana liquidity infrastructure including Classic AMM, CPMM, CLMM, LaunchLab, SDK/API, and RAY buyback structure. The official documentation describes Raydium as “Solana’s most used decentralized exchange and liquidity protocol,” and defines it as a set of non-custodial smart contracts that support swaps, pools, liquidity positions, and token launches. Raydium's official documentation states that it provides AMM v4, CPMM, CLMM, Farm, and LaunchLab programs. (Raydium Docs) As of May 2026, Raydium AMM has TVL of about $991.1 billion based on DeFiLlama, 30-day DEX...
Investment View
It depends on formalizing the “public proposal of protocol parameter changes → voting → execution → post-accounting” procedure. Interpretation: Raydium's profits surged during the Solana memecoin/DEX trading volume cycle in late 2024 and early 2025, and profits are normalizing compared to the peak in 2026. The difference between Q1 2025 Gross Protocol Revenue of $406.96 billion and Q1 2026 $34.05 million is interpreted not as a simple failure but as a result of slowing market opening and changes in trading volume mix. Implications: Raydium has entered the “high growth → profit stabilization” stage. Future maturity is more important than one-time...