Raydium (RAY) Alone Accounts for Nearly 90% of Solana Ecosystem’s TVL

The AMM has hit $1 billion in total value locked, the same as BSC-based stableswap AMM Nerve Finance, which launched on Solana to further its mission to “build the best DeFi products available to the most users.”


Thanks to its low fees and fast transactions, Solana blockchain is gaining traction and trying to level up with Ethereum and BSC.

While the tokens like STEP, SRM, and FIDA are driving the growth of the ecosystem, it is Raydium (RAY) which is accounting for much of the total value locked (TVL) in Solana (SOL).

This week, Raydium hit the milestone of $1 billion in TVL. “No slowing down now. Still a long road ahead!” tweeted the team on Tuesday.

Currently, it is sitting around $900 million, while the entire Solana ecosystem has $1.01 billion worth of assets locked in it.

A Uniswap alternative, Raydium is an automated market maker (AMM) and liquidity provider built on the Solana blockchain. It also supports LP farming to provide liquidity for the Dapps and incentivizes users to join through rewards.

In late February, the project was launched to capture the massive opportunity presented by DEX Serum’s launch on the Solana blockchain, which boasts high speed with extremely low transaction costs. Raydium said at the time,

“This new paradigm presented a massive opportunity to solve the biggest issues in DeFi, by building a fast, efficient AMM that could leverage the existing Serum order flow as well as supply the liquidity in its own pools to the rest of the ecosystem.”

In a matter of just over two months, the protocol has amassed over a billion dollars in assets.

Again, this is thanks to the fact that “the user experience is lightning-fast and costs next to nothing to use,” as put by Joe McCann in “The Unofficial Guide to Yield Farming on Raydium.” Also, it is offering juicy yields, with APR in three digits.

The project had started research on the additional market-making models and partnerships with other protocols as its Q2 2021 goal, followed by leveraging external oracles for improved market-making and governance model ideation in collaboration with partners in the next quarter.

Another project, Nerve Finance, has hit $1 billion in TVL. Launched two months back as the first stableswap AMM on Binance Smart Chain (BSC), last week, Nerve Finance announced its launch on Solana as well.

While the “decision to launch on BSC was originally driven by the low gas fees and fast transactions on BSC, not by ideological beliefs,” the team said they “want to build the best DeFi products available to the most users,” and Solana will help them further this mission.

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