Raydium’s Rise: How Solana’s AMM King is Conquering the Perps Market | by Dr. Ahmed Hatem | The Capital | Feb, 2025

Raydium, a decentralized crypto trading engine on the Solana blockchain, is rapidly gaining traction in the perpetuals (perps) market. Known for its automated market maker (AMM) setup, which allows users to create trading pools for various assets, Raydium is now making a significant push into the world of perps. This article explores Raydium’s ascent, its strategies, and what it means for the future of decentralized finance (DeFi) on Solana.

Perpetual contracts, or perps, are derivatives that allow traders to speculate on the price movements of an asset without actually owning it. Unlike traditional futures contracts, perps have no expiration date, allowing traders to hold positions indefinitely, opening opportunities for both short-term speculation and long-term investment strategies.

Raydium’s success stems from its innovative AMM model, which has made it a key player in Solana’s memecoin era. However, the platform is now aiming to strengthen its relationship with traders (“takers”) and expand its reach in the perps market.

• Leveraging Orderly Network: Raydium’s perps trading is supported by Orderly Network, which facilitates cross-chain trading and provides a unified order book. This collaboration allows for faster listing of new contracts and the potential to capture emerging markets.
• Focus on User Experience: By partnering with Orderly Network, Raydium can save on transaction costs and ensure smoother processing, improving the overall user experience.
• Aggressive Expansion: Raydium’s perps service already offers trading in a wider range of assets compared to its competitors, Jupiter and Drift. This extensive selection, combined with a focus on marketing and outreach, positions Raydium for further growth.

While Raydium’s perps service is still relatively new, it has already achieved a daily trading volume of $100 million. Although this is less than Jupiter’s $2 billion and Drift’s double volume, Raydium is confident it can capture more market share.

• Research: Understand the assets you’re trading and the risks involved.
• Start Small: Begin with smaller positions to get a feel for the platform and the market dynamics.
• Use Stop-Loss Orders: Protect your capital by setting stop-loss orders to limit potential losses.
• Stay Informed: Keep up-to-date with market trends and news that could impact your positions.

• Trend Following: Identify assets with strong upward or downward trends and open positions accordingly.
• Range Trading: Capitalize on assets trading within a defined range by buying at the support level and selling at the resistance level.
• Breakout Trading: Enter positions when an asset breaks out of a consolidation pattern, anticipating a significant price movement.

Raydium’s entry into the perps market signifies a new era for DeFi on Solana. With its innovative approach, strategic partnerships, and focus on user experience, Raydium is well-positioned to become a major player in the decentralized perps space. As the Solana ecosystem continues to grow, Raydium’s influence is likely to expand, offering traders more opportunities and driving further innovation in the DeFi sector.

Raydium’s journey from an AMM to a contender in the perps market demonstrates its adaptability and ambition. By leveraging its strengths and focusing on user needs, Raydium is poised to make a lasting impact on the Solana ecosystem and the broader DeFi landscape. As competition intensifies and new opportunities emerge, Raydium’s ability to innovate and execute will determine its ultimate success in the dynamic world of decentralized finance.