Which Is The Top DEX In The Solana Ecosystem? Orca Vs Raydium

SOL’s rapid price appreciation comes on the back of several factors, the most important of them being its lightning-fast transaction speed and cheap gas fees — the two major problems that plague the Ethereum ecosystem.

Solana provides an attractive and feasible alternative to retail investors to enter the booming DeFi and NFT landscapes without having to worry about putting a hole in their pockets by paying exorbitant transaction fees as is the case with Ethereum.

According to data from DeFi data aggregator DeFiLlama, the total value locked (TVL) in the Solana DeFi ecosystem currently stands at $10.38 billion. For comparison, the figure stood at $150 million in March 2020, indicating almost a 10x increase in TVL in 7 months.

As is the case with every emerging blockchain ecosystem, the biggest plays are usually among the leading protocols in the concerned smart contract platform. In the case of Solana, there are two leading decentralized exchanges witnessing steep adoption with increasing TVL — Raydium (RAY) and Orca (ORCA).

In this article, we will dig deep into the aforementioned top decentralized exchanges in Solana. We will compare the two platform’s rising adoption, backers, tokenomics, and their roadmap to better understand the Solana DeFi ecosystem.

Orca

A major bottleneck keeping the mainstream populace away from the DeFi world is the complex user interface. While DeFi offers a lot of innovative and robust ways of increasing capital efficiency and earning attractive yields, the user experience of the vast majority of DeFi protocols can sometimes prove to be too complex for common folks to wrap their head around.

This is where Orca comes in.

Solana-based Orca DEX is committed to following a human-centered approach to make the seemingly complex DeFi ecosystem simple to interact with for regular people. Orca aims to establish itself as the de-facto human-centric DEX of Solana to ensure all users have a delightful experience while interacting with the platform.

In addition, Orca aims to provide high capital efficiency to all its users capital, a trademark for any successful automated market maker (AMM).

While the DeFi AMM competition is fierce in the Solana ecosystem, Orca has several features in addition to its user-friendliness that separates it from its rivals.

For instance, the DEX displays the Fair Price Indicator that shows the difference between the quoted price by Orca vis-a-vis crypto price tracking websites such as CoinGecko and CoinMarketCap. This feature helps the user to see whether the prices fall within their expected range during their trades.

Which Is The Top DEX In The Solana Ecosystem

As icing on the cake, consider Orca’s heavily community-oriented tokenomics. Almost 2/3rd of its total 100 million ORCA tokens are allocated for the community, liquidity providers, incentives, and airdrops.

Orca Vs Raydium

Finally, let’s come to the team behind Orca. The Solana-based DEX is headed by Grace “Ori” Kwan and Yutaro Mori. While Kwan studied Computer Science at Stanford University followed by a professional stint with various startups, Mori has previously contributed to ETH2.0 and developed smart contracts for UMA, an Ethereum-based on-chain synthetics assets platform.

Raydium

Raydium is another top DEX in the Solana ecosystem that uses liquidity not only from its pools but also from Serum DEX’s orderbook.

To understand Raydium, it must be noted that, at present, it primarily works as a market maker for Serum, a Solana-based DEX that uses orderbooks instead of liquidity pools to facilitate efficient and low-cost token swaps.

Raydium was launched in early 2021 by a team of accomplished Solana developers and quant-traders, including FTX crypto exchange CEO, Sam Bankman-Fried.

Raydium offers several services typically offered by centralized exchanges such as the ability to place limit orders, minimal transaction fees, and others. Essentially, Raydium aims to bring together the best of both the worlds — CEX and DEX – to offer Solana users a seamless trading experience, something that DeFi platforms haven’t really delivered on yet.

Coming to Raydium’s tokenomics, the DEX’s native token RAY’s current circulating supply is 71,385,859 RAY with a maximum supply of 555,000,000 RAY, according to data from CoinGecko.

At the time of writing, the token has a market cap of almost $750 million and a market cap to TVL ratio of 0.48 — signifying the protocol’s market cap is valued lower than the total value of digital assets it secures.

As mentioned earlier, the competition within the Solana DeFi space is tough and it is only expected to get tougher as DeFi becomes increasingly mainstream. Raydium hopes to capitalize on its first-over advantage as an AMM that is directly integrated with Serum, the on-chain orderbook mecca of the Solana DeFi space.

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