Raydium is an Automatic Market Maker (AMM) protocol and a liquidity pool built for the Solana network. Recently, the Solana network suffered a massive traffic jam once again during the latest Raydium IDO event. During the last 24 hours, the transaction speed for the Solana network dropped by 50%; however, the network managed to remain online and escaped crashing.
The IDO or Initial DEX offering is an event that allows the DeFi developers to offer the native tokens of the top projects to the investors before the supply increases in other competitive DeFi markets. The latest IDO that caused the clog was organized by AcceleRaytor. During the IDO participation, the amount of user activity increased on Solana, and it went into a shock.
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During the IDO, there are a considerable amount of tech-savvy investors who deploy bots on the network to score as many winning bids as possible. As a result of these bots, the Solana network has consistently faced issues with optimum transaction traffic. The rest of the Solana projects also suffer from the event. This is not the first time that the network went into a shock during an IDO.
In September, an IDO named Grape protocol caused the network to go into a freeze period for 18 hours. For the time that the network was frozen, the users on the Solana were unable to process any transactions on the network. On the other hand, the developers and the moderators of the network kept trying to bring the ecosystem back online.
The media reporter tried to establish contact with the co-founder of the Solana network, Anatoly Yakovenko. He has yet to provide feedback on the issue. However, a few weeks ago, he commented during a podcast that the Solana network is currently unable to support the equal weight of traffic as the Ethereum network.
However, it has been noted by the Solana developers that since the Grape protocol IDO the scalability of the Solana network has improved. Despite experiencing a massive slowdown, the DeFi platform was able to remain online and keep processing transactions at a slower speed than normal.