AutoFarm on Raydium Platform
What is Raydium?
Raydium is an automated market maker (AMM) built on the Solana blockchain. They provide liquidity to the order book of the Serum decentralized exchanges (DEX). Apart from that this innovative feature It is very similar to Pancake Swap on the Binance Smart Chain or Uniswap on Ethereum. They provide swap like in above platform, yield for liquidity provider, tax fees reward for RAY stakers.
Now we will see how to become a Liquidity Provider on Raydium Platform. I suggest you to pass by FTX Platform as they have direct transaction to Solana Blockchain without any fees. It’s way better than make the change on Ethereum blockchain where fees are very expensive right now.
From FTX you can buy Sol that we need for fees transaction and other asset that we will put in Liquidity Pool.
Also you need to add Sollet wallet extension to your browser. Afterward add tokens, so in our case RAY , USDT, SOL. Transfer your asset from FTX to your Sollet wallet.
To do so, don’t hesitate to follow sollet tutorial on it.
When you have transfer some Sol into your wallet to validate transaction and the assets to provide in Liquidity pool let’s see how to become a farmer on raydium.io/liquidity/ !
Now that you have your asset in Sollet browser extension and are on raydium let’s provide liquidity.
Let’s jump into farming by providing asset in raydium.io/liquidity/
You can add tokens and add the equivalent amount to get Liquidity Provider Token. This Token proves that you are a Liquidity provider.
This LP Token allows you to earn fees from Transaction on these pairs. In this example, you will have a certain amount of all fees of SOL/RAY Exchange.
Indeed, when you make a trade or swap on Raydium there is 0.25% fee transaction.
0.22% is redeposited into the liquidity pool and acts as a reward for liquidity providers.
0.03% is sent to the staking pool and acts as a reward for those staking their RAY tokens.
You can have a look of volume of exchange and Fees/Liquidity ratio on https://raydium.io/pools/
Now Let’s put our LP Token in https://raydium.io/farms to lend our LP Token into Farming Pool to have Raydium Rewards at high rates!
Once it is staked, you will have RAY Reward coming at each transaction block. For your information APR is live and can go up or down according to the liquidity and the volume.
Moreover, you can also Stake your RAY into https://raydium.io/staking/. This staking pool can offers you the access to some Initial DEX Offering (IDO). An IDO is a token offering to start and promote a crypto-project in this case on the Solana Blockchain. You can have a look at the condition on this AcceleRaytor following this link.
Autofarm RAY Token
In conclusion, on the more technical side, I’ve made a Python Script that you can let run on your device this automatically stake your LP Reward or Staking Reward into more staking. Like this you will have compound interest!
You can find the instruction and the script on my GitHub: https://github.com/zeltraxi/Raydium_autofarm
Now you have optimized all your Farming Processus and autofarm on Raydium Platform. You are one of the actors of Solana ecosystem and it rewards you for it.
This is not a financial advise and be aware of their always is risk when investing.
Moreover be aware of Impermanent Loss when providing Liquidity: https://academy.binance.com/en/articles/impermanent-loss-explained
If you want to go further:
To know more about this Raydium project : https://raydium.gitbook.io/
Raydium French Youtube Tutorial: https://www.youtube.com/watch?v=YIyJNBq02TI
In relation here is my Lending/borrowing OASIS platform review : https://www.guillaumeniay.eu/oasis-defi-platform/
Don’t miss out my review of CeFi, DeFi : https://www.guillaumeniay.eu/cefi-defi-the-renewal-of-savings/
AutoFarm on Raydium Platform made by Guillaume Niay