Raydium CPMM: What It Is and How It Powers Solana Trading

When you trade tokens on Solana, you’re often using something called a Raydium CPMM, an automated market maker built into the Raydium decentralized exchange that uses constant product market making to price trades without order books. Also known as a constant product market maker, it’s what lets you swap SOL for a new memecoin in under a second, with fees under a penny.

Raydium CPMM isn’t just another DEX—it’s the engine behind most Solana token trades. Unlike older systems that rely on buyers and sellers matching orders, Raydium uses smart contracts and liquidity pools. Anyone can add funds to these pools and earn fees from every trade. This is why projects like $BONK or $WIF launched on Raydium: it’s fast, cheap, and works without middlemen. But here’s the catch—liquidity pools can dry up fast, and some tokens listed there have no real value. That’s why our collection includes guides on how to spot safe pools, why some trades fail even when the price looks good, and how to avoid getting trapped in dead tokens.

Raydium CPMM is closely tied to liquidity pool, a reserve of two tokens locked in a smart contract that enables trading by maintaining a fixed mathematical ratio. Without enough liquidity, your trade might slippage by 20% or more. That’s why posts in this collection break down real examples: how a $10,000 pool can get drained in minutes, why some projects fake liquidity, and how to check if a pool is actually active. You’ll also find deep dives into automated market maker, a system that uses algorithms instead of order books to set prices and execute trades automatically models, comparing Raydium’s approach to Uniswap’s and why Solana’s speed makes CPMMs here more efficient—but also riskier.

You won’t find fluff here. Just real cases: traders who lost money because they didn’t understand slippage, how Raydium’s integration with Serum helped it grow, and why some users avoid it entirely after getting stuck with worthless tokens. If you’re trading on Solana, you’re using Raydium CPMM. But do you really know how it works? Below, you’ll find clear, no-nonsense guides that show you exactly what to look for—and what to run from.