Raydium DEX- A Transparent Decentralised Exchange
- This exchange is decentralised and works on the blockchain.
- It allows only crypto transfers and do not allow fiat exchange
The crypto market has seen a lot of growth in the recent year, although the crypto winter is going on. Still, the market has a lot of potential. This statement can be verified from the fact that, according to the recent estimates, Crypto Market cap will reach approximately $11.71 Billion by 2030. The reason for such big estimates is the developments we are experiencing nowadays. One example of such development is the Raydium Dex project. In this article, we will understand in detail what this project is and how it functions.
What is Raydium DEX?
The name itself suggests that this is a decentralised exchange that allows users to transact their cryptocurrency assets. This platform is also unique from all other decentralised exchanges because of the unique features it offers. For example, it is not centralised and unlike all the centralised exchanges that allows users to trade in fiat currency, it does not allow fiat currency trade. Which means you can get only crypto in exchange for crypto. This means you can only exchange crypto for crypto, making it truly decentralised.
Another differentiation that this decentralised exchange provides in comparison to other centralised exchanges is that its transactions are recorded on the blockchain and not on internal databases. Centralised exchanges record all their transactions on databases, which are then stored on their physical hard drives. The transactions recorded on this exchange are also publicly visible, which makes this exchange more transparent than any other centralised exchange. This exchange is also the first of its kind because it is the first decentralised Automated Market Maker(AMM). While all the decentralised exchanges are built on some or other blockchain, this exchange is built on one of the most efficient and fast blockchain called Cardano. Users can trade, swap and provide liquidity on this platform. The thing which makes it unique is that it utilises the Serum system for better liquidity and faster swap.
Let’s discuss in detail which features this platform provides
- Crypto Swap
One of the major reasons the promote the use of this exchange compared to other exchanges is that it allows borderless asset exchange. The process of using this exchange is not only easy but is also streamlined and user-friendly, making it accessible even to beginners.
- Fast and Cheap
Transaction speed is the speciality of the Radium platform. This platform integrates speed with low gas fees, making it one of the most trustworthy and efficient platforms.
- Interaction With Serum
This platform allows the integration of Serum technology and equips users with access to the liquidity pool. It perfectly executes AMM protocol with Serum’s order book.
The Working of the Raydium DEX
Since it is a decentralised exchange, there is no central authority that controls its working. All the decisions of this platform are taken through community participation. The voting power of each member is determined by the number of tokens they hold. Due to the AMM mechanism it follows, it is built on two basic properties. The first property provides users access to the Serum’s order book. The second property is that it solely relies on the Constant Function Automated Market Maker (CFAMM).
