Raydium Support for Token-2022
Raydium is excited to introduce support for Token-2022 — a new standard that brings even more possibilities to the Solana ecosystem.
A New Token Standard
Solana’s existing Token Program has served as a reliable solution for assets on the network. However, as Solana continues to grow, demand for additional token functionality has increased. Token-2022 is the next step for enabling the future growth and evolution of assets on Solana.
Token-22 is an exciting frontier for new tokens in the Solana ecosystem, enabling additional token functionality through an extension model. However, as with any innovation in the space, caution and due diligence are essential. With the inclusion of token extensions, like transfer fees, users should ensure that they research and fully understand the extensions and features of any Token-2022 asset they choose to interact with. It is important to note that Token-2022 is an unaudited program and is still in beta. While Raydium strives to ensure the utmost security and reliability, it’s crucial to acknowledge the inherent risks associated when interacting with a cutting-edge protocol that is still under development.
Support for CLMM Pools with Token-2022 Assets
Raydium now supports the permissionless creation of concentrated liquidity pools (CLMM) and farms for Token-2022 assets. CLMM pools offer unique advantages, such as increased liquidity depth around the current price, leading to better prices for traders. CLMM liquidity providers have the opportunity to optimize capital efficiency and earn a higher share of fees and rewards. However, it’s important to be aware that active management of positions is required, and there is a potential for increased impermanent loss compared to standard constant product pools.
As Raydium strives to serve as the permissionless liquidity destination on Solana, the support for Token-2022 represents a significant step forward in advancing token functionality. Adopting this cutting-edge token standard paves the way for an even more vibrant Solana ecosystem.
If you want to learn more about creating a permissionless concentrated pool and farm, click here.
As always, if you have any questions, feedback or need support, make sure to drop by the Raydium Discord server!
Disclaimer: The content in this article is for informational purposes only and should not be construed as financial or investment advice. Please exercise caution and do your own research before engaging with Token-2022 or any other DeFi protocol.
