Raydium is an automated market maker (AMM)-powered DEX on the Solana blockchain. It leverages an on-chain order book provided by Serum, providing improved liquidity and decreasing slippage.
The native token of the protocol uses a ticker RAY and has a few use cases. Firstly, validators stake it in return for a share of protocol fees as a reward. Secondly, stakers also receive IDO allocations in addition to fees for more incentives. Thirdly, RAY acts as a governance token that enables on-chain voting on proposals about the Raydium protocol.
RAY tokens are distributed as liquidity mining rewards to users that provide liquidity. To that end, 188.7 million RAY, or 34% of the total supply are going to be distributed over three years. The rest of the supply is reserved for growth incentives and is also locked behind a linear vesting schedule.