Raydium Launches Burn-and-Earn Feature for Coin Creators to Lock Liquidity

Raydium, the number one decentralized exchange (DEX) on Solana by volume, has launched a Burn-and-Earn feature geared toward token creators.

This new feature allows teams to boost trust by permanently locking CLMM liquidity while trading fees earned by the position remain fully claimable, said the team on X.

Withdrawing liquidity in large swathes is a big concern for traders, so teams permanently locking tokens gives investors more confidence that large holders won’t rug pull them.

By locking liquidity in Raydium’s CLMM, a concentrated liquidity market maker, capital efficiency improves since teams can deploy their liquidity at specific price levels.

RAY spiked 3% to $1.51 today and has notched an impressive 800% gain on the year.

It’s important to note that technically, the NFT that represents a user's CLMM position will not be burnt but instead permanently locked. The new feature requires five steps that can be viewed on the platform’s official documentation page.

Raydium is the fourth-largest DEX in the industry, with $876 million in TVL, according to DefiLlama. It trails Uniswap ($4.3 billion), Curve ($1.7 billion), and PancakeSwap ($1.6 billion), two of which are Ethereum-based, while PancakeSwap mainly caters to BNB Chain.