@wwwwoo
Raydium's hybrid AMM-orderbook model (legacy integration with OpenBook/Serum) historically enhanced capital efficiency by routing idle liquidity to order books, reducing slippage and boosting LP yields from fees + maker rewards.
Today, pools primarily function as traditional AMM (CPMM constant-product) or CLMM (concentrated liquidity), offering higher efficiency for stable/volatile pairs.
Investment opportunities: Provide liquidity to earn trading fees (0.25% typical), plus farm incentives/RAY rewards; APYs often 20-40% on high-volume pools. Solana's growth drives deep TVL (~$2B+ in 2025) and volume.
Risks: Impermanent loss (amplified in CLMM), volatility, reward dilution.
Strong for yield farming in Solana DeFi.
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