The creators of Raydium (RAY) bet that liquidity is the key to success in the cryptocurrency universe.
To explain, Raydium users can provide liquidity for any Solana (SOL) token. SPL Tokens are fungible tokens built on the Solana blockchain. Creators build SPL Tokens with the SPL Token UI.
Raydium (RAY) serves as both a liquidity provider and a launchpad for new Solana projects. Notably, Raydium’s AccelaRaytor feature serves as a launchpad for new Solana projects.
Raydium could be Scalable
Solana (SOL) claims its blockchain can process up to 50,000 transactions a second (TPS). Hence, Solana claims to be scalable. Scalable means that a blockchain can process enormous numbers of transactions. Hence, Solana claims its blockchain could process 50,000 transactions a second or serve 50,000 customers at once.
I think cryptocurrencies and blockchains have to be scalable to reach wide markets. To explain, a blockchain that is not scalable could crash if it tries to process enormous numbers of transactions.
Thus, they built Raydium on a scalable blockchain. Theoretically, Raydium could process 50,000 transactions a second or 50,000 trades or swaps on its exchange system.
For example, a Bitcoin (BTC) payments app could crash if it tried to process five payments at once. To elaborate, Blockchain.com estimates Bitcoin’s TPS was 4.443 on 11 August 2021. Obviously, no game or e-commerce solution that could process only four payments a second could make money. Similarly, a Bitcoin decentralized exchange (DEX) could crash it tried to process five trades a second. Hence, no trader or speculator will use that exchange.
Why Liquidity Matters
Importantly, designers claim Raydium offers Ecosystem-Wide Liquidity for users and projects. Liquidity is the ability to convert cryptocurrency into spendable cash. Without, liquidity cryptocurrency is worthless.
To explain, liquidity means you can convert your cryptocurrency into something you can use to buy food from your local grocery store. I think cryptocurrency’s greatest flaw is the lack of liquidity.
I suspect ordinary people will not use a cryptocurrency they cannot spend at the gas pump, or the supermarket cash register. Similarly, I think most speculators will not use a cryptocurrency than cannot cash out fast. I think they design Raydium as a fast-cash out cryptocurrency.
Hence, Rayidum could be attractive to both ordinary people who need cash to buy food for their families and speculators who need cash to finance their activities
High-Liquidity Launches
AcceleRaytor offers high-liquidity launches for new blockchain apps and cryptocurrency projects. They claim the High-Liquidity Launches offer a simple three-step process to raise funds and launch Initial Dex Offerings (IDOs). For example, an investment bank that wants to create a decentralized exchange could use AcceleRaytor to launch it.
Theoretically, the High-Liquidity Launches could give developers and entrepreneurs access to large amounts of cash. Hence, the High-Liquidity Launches could bootstrap liquidity on Serum and Raydium.
Serum (SRM) is a decentralized exchange (DEX) and ecosystem that claims to offer high speed and low-transaction costs for decentralized finance (DeFi). They built Serum on the Solana blockchain. Serum is a partner of Rayidum.
AcceleRaytor projects include the Solarise Finace Price (SLRS) tokens. Solarise is a decentralized fund management and investment protocol for Solana. Solarise allows anybody to create and manage funds.
Another AccelerRaytor project is Synthetify (SNY) a decentralized synthetic assets exchange built on Solana. Synthetify claims to be a fully scalable solution available in most browsers that can enable instant transactions. Synthetify claims to offer oracles that update prices every two seconds, guaranteeing accurate prices and smart contracts to project funds from hacking.
Synthetify claims it can create bridges between cryptocurrencies, stocks, fiat currencies, and other financial instruments. Hence, I think Sythenfiy is a bridge chain that offers a fast-shortcut between blockchains.
Theoretically, Sythetify could power stablecoins and other smart assets that allow fast transactions in crypto.
Can Raydium Cash in on Yield Farming?
Additionally, Raydium allows users to earn yield through fees and yield farms. In yield farming, speculators trade or lend crytpo assets to generate additional cryptocurrency.
CoinMarketCap’s Werner Vermaak claims yield farming is the biggest DeFi sector. Vermaak estimates that yield farming’s market cap grew from $500 million to $10 billion in 2020.
To cash in yield farming, Raydium offers a liquidity pool that allows anybody to add liquidity to SPL tokens. In addition, there’s a yield farming feature that generates income through fees. Importantly, Raydium claims it can offer friction-less yield.
I think yield farming contributes to liquidity by generating cash through yield fees.
Similarly, there is a trade and swap feature that offers lightning-fast swaps. Hence, you can cash your Raydium out fast. I think this attribute will make Raydium attractive to many speculators.
What Value Does Raydium (RAY) Have?
Raydium’s developers claim to have value. On 11 August 2021, Raydium’s website claimed to have $733.151 million in locked value and $5.929 billion in trading volume.
In contrast, CoinMarketCap gave Raydium (RAY) a Coin Price of $4.98, a Market Capitalization of $292.358 million, a Fully-Diluted Market Cap of $2.774 billion, and a 24-Hour Market Volume of $70.892 million on 14 August 2021. They based those numbers on a Circulating Supply of 58.661 million RAY. Additionally, there was a Maximum Supply and a Total Supply of 555 million on 14 August 2021.
I like Raydium because its designers are trying to create a cryptocurrency with moneymaking capabilities. I think those moneymaking capabilities include yield farming, High-Liquidity Launches, and the Liquidity Pool.
Moreover, they built Raydium on a blockchain that could be scalable. Hence, Raydium apps could work and make money as soon as they could go live.
Therefore, I consider Raydium (RAY) a cryptocurrency to watch. You need to watch Raydium because it appears to be a cryptocurrency to make money in the real world.
Originally published at https://marketmadhouse.com on August 13, 2021
