- What is a DEX and how does it work on a blockchain?
- The top 3 Solana based dexs’ to try in 2025.
- How to trade in SOL based tokens on Solana dexs’.
Solana ranks second in protocol TVL & active addresses. This is majorly due to its high TPS and its low fees, that has paved the way for higher developer and user activity. It houses some of the best decentralized exchanges with multiple functionalities, excellent trading and investing opportunities and high throughput with low latency.
What Is A Decentralized Exchange & How Does It Work?
A decentralized exchange works on a peer to peer blockchain technology.
The core of most Solana DEXs is a set of self-executing contracts called “smart contracts.” These contracts automate all aspects of a trade, including order matching, asset exchange, and settlement. Decentralized exchanges use this smart contract to offer a range of services like swap (you can swap your crypto asset for another), Lend & trade in perpetuals.
To start swapping, lending or adding crypto in Solana liquidity pools you must have a self custodial wallet like Phantom or Solfare funded with SOL crypto. You can buy SOL from any reputable centralized crypto exchange like Binance, Coinbase, OKX and Bybit.
Top 3 Solana DEXs To Watch Out For In 2025
In this section we will take you through the top decentralized exchanges built on Solana.
Raydium
Raydium is a decentralized finance protocol on Solana with its native token RAY at the centre of it. The dex interacts with a central order book to facilitate transparent and decentralized transacting on the protocol. An order book on a Solana exchange is a real-time, electronic list of all the outstanding buy and sell orders for a particular trading pair. Basically, you can check the latest sell and buy trades on Raydium.
On Raydium you can use your assets and participate in the liquidity pool by adding your assets. This way you can earn rewards on your idle crypto assets.
On Raydium, you can also swap your assets. For example, if you want to swap your SOL for USDC, then you can. All you have to do is connect your Solana wallet and enter the amount you want to swap. Next, click on Swap.
Besides swapping tokens and providing liquidity you can also trade in crypto perpetuals.
Benefits of Trading on Raydium DEX
High Liquidity and Efficient Trading
Raydium combines its own liquidity pools with the central limit order book of OpenBook, a decentralized exchange on Solana. This integration creates deep liquidity, allowing traders to execute large orders with minimal price slippage. It also ensures efficient order execution, helping traders get the best possible prices.
Low Fees and Fast Transactions
Operating on the Solana blockchain gives Raydium an advantage over many other DEXs. Solana is known for its lightning-fast transaction speeds and extremely low fees. This makes trading on Raydium cost-effective and provides a smooth user experience, even during periods of high network congestion.
Passive Income Opportunities
By providing liquidity to the platform’s pools, users receive LP (liquidity provider) tokens and a share of the trading fees. Raydium takes this a step further with its “Dual Reward Farming” feature, which allows liquidity providers to stake their LP tokens to earn additional rewards.
Jupiter
Jupiter is a decentralized exchange aggregation platform. It works differently than Raydium or any other defi platform. This platform checks multiple DEXs and automatically analyzes the available liquidity across platforms. Then it calculates the most efficient trading path. This helps users get the best price, minimize slippage, and save on fees.
On Jupiter you can swap tokens much like Raydium.
Jupiter offers a better swapping experience. On this dex you can buy and sell crypto instantly or you can even place a limit order. Meaning, if you want to sell your crypto at a specific price, then all you have to do is choose Trigger and set the price you want to buy or sell at. That’s it. When the crypto asset price reaches your trigger price the order will get executed.
Liquidity Pooling is another feature of Jupiter. You can put your idle crypto to use. All you would have to do is add your assets to the pool and earn rewards. You can add and remove assets from the pool whenever you want to.
As you can see in the image above, you can be a liquidity provider for many assets.
If you are good at futures trading then you can try your hand in perps on Jupiter. The major difference between futures and perps is that perps trading does not come with an expiration date for contracts. On Jupiter you can trade in cryptocurrencies like SOL, ETH and WBTC.
Orca
Orca is one of the fastest growing decentralized exchanges built on the Solana blockchain. It has a simple and easy to use interface making it ideal for users who are trying defi for the first time. It allows users to swap tokens, provide liquidity, and earn rewards in a fast, low-cost, and user-friendly environment.
Features like the “Fair Price Indicator” and “Magic Bar” simplify the trading process and help users avoid common pitfalls like high slippage.
Swapping On Orca
Similar to Raydium and Jupiter, you can swap tokens on Orca too.
Liquidity Pooling On Orca
On Orca you can become a liquidity provider by opting to use your idle crypto. You can add your liquidity to the pools and earn. These liquidity pools are also flexible and allow you to add and remove your assets from liquidity pools.
What Are The Benefits Of Using Orca Dex?
Orca, much like other decentralized exchanges listed above, has specific functionalities that make it a unique platform to trade SOL based tokens on.
Automated Market Maker (AMM): Orca uses an AMM model, which means you swap tokens with a liquidity pool rather than directly with another person. This allows for instant and permissionless trading
Fair Price Indicator: A key feature of Orca is its user-friendly interface, which includes a “Fair Price Indicator.” This tool helps you ensure that the price you are getting for your trade is close to the market rate and that you’re not experiencing excessive slippage.
User-Friendly Interface: The platform is designed to be straightforward and easy to use, making it accessible for both beginners and experienced DeFi users to swap their tokens.
Wrapping Up
The Solana ecosystem is a thriving hub for decentralized finance, and its DEXs are at the forefront of this growth. Platforms like Raydium, Jupiter, and Orca each offer unique features and advantages that cater to different types of users. With Solana’s high speed and low transaction costs, these DEXs are well-positioned to continue their growth and innovation in 2025, offering a compelling alternative to traditional, centralized exchanges.
