Raydium Launches Fee-Sharing Tool for Token Projects on CPMM Pools

The Solana-based decentralized exchange says token creators can now earn configurable lifetime revenue from every swap in CPMM (constant product market maker) pools, with rewards paid in any asset.

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Summary

Raydium, a Solana-based decentralized exchange, said it has launched a fee-sharing feature that allows projects launching tokens to capture ongoing revenue from swaps in CPMM (constant product market maker) pools. According to the announcement, token creators can set a configurable creator fee and receive rewards in any asset. The update adds a new monetization option for token issuers using on-chain liquidity pools, where swap fees can be distributed automatically through smart contracts (self-executing blockchain code).

Terms & Concepts
  • CPMM: Constant product market maker, an automated market maker model that prices assets in a liquidity pool using a mathematical formula.
  • Creator fee: A configurable portion of trading fees routed to a token project or creator when users swap through a supported pool.
  • Smart contract: Self-executing blockchain code that automatically enforces rules such as fee distribution without intermediaries.