Raydium is one of the longest-running and most important DEXs on Solana. It combines:
- A swap interface
- An AMM for liquidity pools (CP-AMM)
- A CLMM (concentrated liquidity) system
- Integrated routing across Solana’s DeFi ecosystem
Recent official docs and 2025 exchange reviews highlight Raydium as a core venue for Solana trading and liquidity provision.
This guide shows you how to:
- Connect your wallet to Raydium
- Swap tokens safely
- Add liquidity to pools
- Understand fees, price impact, and impermanent loss
- Avoid common mistakes and security pitfalls
1. What Is Raydium?
Raydium is a Solana-based AMM and DEX that lets you:
- Swap SPL tokens (Solana tokens)
- Provide liquidity to pools and earn fees
- Access both “classic” pools and newer CLMM pools
- Tap into the broader Solana DEX ecosystem via routing
The official docs describe Raydium as a place where you can trade & swap, create pools, and provide liquidity, with integrated routing for better trade execution.
2. What You Need Before Using Raydium
To get started, you’ll need:
- A Solana-compatible wallet, such as:
- Phantom
- Solflare
- Backpack
- Some SOL in your wallet:
- For gas fees (very cheap compared to Ethereum)
- Sometimes as part of the token pair you want to trade or provide liquidity for
- Basic familiarity with:
- Swapping tokens on DEXs
- The concept of liquidity pools and impermanent loss (see previous article)
Many 2025 tutorials (including KuCoin’s Raydium user guide) emphasize Phantom + SOL as the simplest entry path.
3. How to Connect Your Wallet to Raydium
Step 1 — Open the Official Raydium Website
- Visit https://raydium.io and click Launch App, or directly open the app subdomain.
- Double-check the URL — many phishing sites imitate popular DEXs.
Step 2 — Connect Wallet
- Click “Connect Wallet” (top-right).
- Select Phantom, Solflare, or another supported wallet.
- Approve the connection inside your wallet popup.
Once connected, your wallet address should appear in the interface.
4. How to Swap Tokens on Raydium
The Swap page is the main entry point for simple token trades. Raydium’s docs provide a clear swapping guide.
Step 1 — Choose the Tokens
- On the Swap tab, choose:
- From: token you’re selling (e.g. SOL, USDC)
- To: token you’re buying
You can choose from the token dropdown, or paste an SPL token address for newer tokens (always verify contracts).
Step 2 — Enter the Amount
- Enter the amount you want to swap.
- Raydium will show:
- Estimated output
- Price impact
- Route (in some cases)
Step 3 — Check “Minimum Received” and Price Impact
According to Raydium’s official docs, you should pay close attention to:
- Minimum Received — the lowest amount you’ll get after slippage.
- Price Impact — how much your trade moves the price.
- Large trades in low-liquidity pools can cause significant losses.
Step 4 — Approve and Confirm
- Click Swap.
- Your wallet will pop up showing:
- The input and output tokens
- Network fee (SOL)
- Confirm the transaction.
After a few seconds, your new token balance should appear. Sometimes the UI takes a moment to refresh—this is normal.
5. How Fees Work on Raydium
Raydium charges different swap fees depending on the pool type. The fee structure (as of 2024–2025) is:
- AMM Pools: 0.01% to 1% per swap
- 88% of the fees go back to the liquidity pool as rewards for LPs
- 12% used to buy back RAY (Raydium’s token)
- CLMM Pools:
- 84% redeposited to LPs
- 12% used to buy back RAY
These fees are in addition to the small Solana gas fee.
6. How to Add Liquidity on Raydium (Standard AMM Pools)
Providing liquidity lets you earn a share of fees whenever traders swap through your pool. A recent step-by-step guide (mid-2025) walks through creating pools and adding liquidity using Raydium’s updated interface.
Step 1 — Go to the “Liquidity” Section
- In the app, navigate to “Liquidity”.
- You can either:
- Add liquidity to an existing pool, or
- Create a new pool (more advanced, usually for token projects)
Step 2 — Choose the Pool (Token Pair)
- For beginners, choose an existing, well-known pair:
- SOL / USDC
- RAY / USDC
- Stablecoin / stablecoin pairs
These tend to have deeper liquidity and more stable returns.
Step 3 — Enter Token Amounts
Raydium AMM pools generally require equal value of both tokens:
- If you provide 1 SOL and SOL is $100,
- You must also provide about $100 of the other token (e.g. 100 USDC).
The UI will calculate the matching amount automatically.
Step 4 — Approve Tokens and Confirm
- If it’s your first time providing that token, you may need to approve it.
- Confirm the liquidity add transaction in your wallet.
Once confirmed, you’re now an LP and may see an LP token or a UI representation of your position.
Note: As always with AMMs, you are exposed to impermanent loss if the prices of the two tokens diverge.
7. CLMM (Concentrated Liquidity) on Raydium
Raydium also offers concentrated liquidity (CLMM) pools, similar to Uniswap v3 and Orca Whirlpools.
- You provide liquidity within a chosen price range.
- Liquidity becomes more “efficient” — you can earn higher fees with less capital.
- However, if price moves outside your chosen range, your position may become inactive (and you may be left holding mostly one side of the pair).
CLMM pools are more advanced and recommended only after you fully understand:
- Impermanent loss
- Price ranges
- Volatility of the token pair
8. Common Risks When Using Raydium
8.1 Token Risk
- Raydium lists many SPL tokens, including newly launched or highly speculative coins.
- Always verify token mints via:
- Project’s official website or socials
- Reputable aggregators
- Beware of fake pools with similar names.
8.2 Impermanent Loss for LPs
- Providing liquidity is not the same as simply holding tokens.
- If one token pumps or dumps heavily relative to the other, you may underperform simple holding.
- This is especially risky for volatile memecoins or low-cap tokens.
8.3 Low Liquidity & High Price Impact
- Some pools are very small.
- Swapping big size in such pools leads to huge price impact.
- Always check the “Price Impact” and “Minimum Received” before confirming.
8.4 Smart Contract & Protocol Risk
- Raydium is battle-tested, but DeFi always carries protocol risk.
- Use amounts you can afford to risk.
9. Best Practices for Beginners on Raydium
- Start with simple swaps on major pairs (SOL/USDC, SOL/USDT) before experimenting with small caps.
- If you want to try liquidity providing:
- Begin with stablecoin pairs or blue-chip pairs
- Use small amounts
- Track performance vs simply holding
- Monitor Raydium’s docs for best practices around SPL wallets and security.
- Consider combining Raydium with an aggregator like Jupiter to compare prices and choose the best route.
10. Final Takeaway
Raydium is a core building block of the Solana DeFi ecosystem:
- It offers easy token swaps with clear UI and fee breakdowns.
- It lets users provide liquidity via classic AMM and CLMM pools, earning a share of trading fees.
- It integrates deeply with other Solana protocols, making it a central liquidity hub.
If you follow the steps in this guide, start small, and respect the risks (especially IL and low-liquidity pools), Raydium can be a powerful tool in your Solana trading and DeFi toolkit.