Raydium Protocol
Summary
Raydium is an automated market maker (AMM) and decentralized exchange built on the Solana blockchain, launched in February 2021 and widely regarded as Solana's primary liquidity hub. On December 16, 2022, the protocol suffered a major security incident in which an attacker compromised an admin private key — suspected to be via a trojan on a team virtual machine — and drained approximately $4.4 million from eight constant product liquidity pools. Raydium responded with a patched program, a community-approved compensation plan funded by team-held RAY tokens, and has since migrated authority to a Squads multisig with hardware wallet and timelock protections.
Connected Entities
2 entities · 10 linked investigations- + 8 more
Timeline(18 events)
2021-02-01
Raydium Protocol launches on Solana as the first AMM integrated with the Serum order book.
Raydium / BeInCrypto2022-12-01
OtterSec conducts a security audit of the Raydium AMM V3 (concentrated liquidity) program.
OtterSec audit report2022-12-16
Admin key compromise: attacker uses trojan-obtained private key to drain approximately $4.4 million from eight constant product liquidity pools via the withdrawPNL instruction. RAY token drops ~8%; TVL falls ~27%.
Raydium Post-Mortem (Medium)2022-12-16
Raydium deploys hot patch at 14:16 UTC, revoking compromised account authority and transferring control to a hardware wallet.
Raydium Post-Mortem (Medium)2022-12-17
Raydium upgrades the AMM V4 program via multisig, removing the SyncNeedTake and SetLpSupply admin parameters that were exploited.
Raydium Post-Mortem (Medium)2022-12-21
Raydium publishes community forum post proposing a compensation plan for affected liquidity providers, funded by team-held RAY tokens.
CoinTelegraph2023-01-04
Raydium announces final compensation plan details including phase structure and RAY TWAP valuation of $0.1813.
Raydium Medium (Compensation Plan)2023-01-05
Phase 1 Claim Portal opens for individual LP positions.
Raydium Docs — Claim Portal Archive2023-01-19
Attacker deposits approximately 1,774.5 ETH (~$2.7 million) into Tornado Cash mixer, obscuring on-chain traceability of stolen funds.
The Block2023-05-14
Raydium Claim Portal closes; unclaimed compensation funds return to the Raydium Treasury.
Raydium Docs — Claim Portal Archive2024-03-01
Mad Shield conducts security audit of Raydium Constant Product AMM program.
Raydium Docs — Security2025-03-01
Pump.fun launches PumpSwap, a competing DEX on Solana, severing its routing relationship with Raydium and threatening a major share of Raydium's revenue.
CoinTelegraph2025-04-01
Raydium launches LaunchLab, a competing memecoin launchpad, in response to PumpSwap.
DeFi Planet2025-09-30
Raydium reports $2.5 billion TVL at end of Q3 2025, up 35% quarter-over-quarter. LaunchLab accounts for 53% of total revenue at $12.7 million for the quarter.
Blockworks — Raydium Token Holder Report Q3 2025Decision Log
- hash: 7H4WHJrkyGkqEHNTCmfTDfUBwSN9cEb3jjqPox6kHNx8
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 6/1/2026, 5:48:56 PM
last updated: 6/1/2026, 5:49:01 PM
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