Solana: How to perform token swaps using the Raydium SDK

The Solana blockchain is at the forefront of DeFi, known for its remarkable speed and cost-efficiency. This has positioned Solana as a highly sought-after platform for users and developers interested in DeFi activities.

Central to this ecosystem's appeal is Raydium, an automated market maker (AMM) that integrates seamlessly with Serum's central order book, enabling quick and cost-effective token transactions. Raydium's integration with Solana facilitates immediate swaps with minimal slippage and maintains liquidity at optimal levels.

In this guide, we'll walk you through using the Raydium SDK and Solana Chainstack nodes to swap tokens in TypeScript.

Prerequisites

Before diving into the token-swapping process using the Raydium SDK on Solana, ensuring you have everything needed for a smooth experience is key. Here's a quick rundown of what you'll need beforehand and how to set everything up:

Deploy a Chainstack Solana node

  1. Sign up with Chainstack.
  2. Deploy a node.
  3. View node access and credentials.

Prerequisites

  • Node.js: Make sure you have Node.js (version 18 or above) installed on your machine. Node.js is essential for running the scripts and managing the dependencies of the Raydium SDK.
  • Yarn: Yarn is a fast, reliable, secure dependency management tool. It is used to install the necessary dependencies for this project. After installing Node.js, install Yarn by running npm install --global yarn in your terminal.
  • Solana wallet: A Solana wallet with some SOL is necessary to cover the swap’s transaction fees.

Setting up the GitHub repository

This project is organized into various scripts, including utility functions and configuration settings, all stored within a GitHub repository. To begin exploring the project, you can clone the repository onto your local machine. This step guarantees you have all the necessary files and scripts.

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Explore the Github repository: Raydium SDK Swap Example

First, open your terminal and run the following command to clone the repository:

git clone https://github.com/chainstacklabs/raydium-sdk-swap-example-typescript.git

After cloning, hop onto the project’s directory with:

cd raydium-sdk-swap-example-typescript

Next, install the project dependencies. These dependencies are libraries and tools you need to have the project run correctly. In this tutorial we use Yarn, a fast and reliable package manager, to handle these installations. Run the following command to install the necessary dependencies:

yarn

Project structure and environment setup

The heart of this project lies within the src directory, which holds all the executable scripts and necessary configurations for token swapping. Additionally, you'll need a .env file in the project's root directory. This file is crucial as it holds sensitive information that enables the project to interact with the Solana blockchain and perform operations securely.

Configuring environment variables

To set up your environment variables, you'll need to create a .env file at the root of your project. This file should include your Solana RPC URL and your wallet's private key. These variables are essential for connecting to the Solana network and executing transactions. Follow these steps:

  1. Create a new file named .env in the root directory of the project.

  2. Open the .env file in a text editor and add the following lines, replacing YOUR_CHAINSTACK_SOLANA_NODE and YOUR_PRIVATE_KEY with your actual Solana RPC URL and wallet's private key:

    RPC_URL=YOUR_CHAINSTACK_SOLANA_NODE
    WALLET_PRIVATE_KEY=YOUR_PRIVATE_KEY
    
    

Alternatively, the project has a .env.example file, which you can rename to .env , and update with your details accordingly.

Explore the code

The project's source code is divided into three TypeScript files, each with its distinct purpose within the Raydium SDK swapping process. Let's dive into what each file contributes to the project:

The RaydiumSwap.ts file

RaydiumSwap.ts defines the RaydiumSwap class that encapsulates the functionality for performing token swaps using Raydium on the Solana blockchain.

This file includes functions to:

  • Load the Raydium SDK.
  • Connect to the Solana blockchain using the RPC URL from the environment variables you have set.
  • Construct and send swap transactions using the Raydium SDK.
  • Handle errors and transaction confirmations.

Here is an overview of its components:

Constructor

  • Initializes the Solana Connection with a commitment level to confirmed for transaction finality.
  • Creates a Wallet instance using a provided private key to sign transactions and interact with the blockchain.

loadPoolKeys

This asynchronous method fetches the liquidity pool information from a given JSON configuration file and stores it within the class. This information is crucial as it includes the details of the various liquidity pools available on Raydium, which are needed to perform swaps.

findPoolInfoForTokens

This method searches for and returns the liquidity pool information for a specified token pair, facilitating the swap between them. It relies on the data loaded by loadPoolKeys.

getSwapTransaction

  • An asynchronous method that builds a swap transaction based on the input parameters, such as the token to receive, the amount to swap, and the liquidity pool to use. Depending on the useVersionedTransaction flag, it can create either a legacy Transaction or a VersionedTransaction.
  • It first calculates the minimum amount out and amount in for the swap, considering the slippage and pool liquidity.
  • After calculating the swap amounts, it creates a transaction instruction using Liquidity.makeSwapInstructionSimple.

sendLegacyTransaction and sendVersionedTransaction

These asynchronous methods are responsible for sending the respective types of transactions to the network. They also manage transaction configurations, skipping preflight checks and setting maximum retry limits.

simulateLegacyTransaction and simulateVersionedTransaction

These asynchronous methods allow for the simulation of the respective types of transactions. This can be useful for testing to ensure the transaction will likely succeed before sending it to the blockchain.

calcAmountOut

An asynchronous method that performs the swap calculations, determining the expected and minimum amount out, execution price, and associated fees based on the current state of the liquidity pool.

Exporting the class

At the end of the file, the RaydiumSwap class is exported, making it available for import in other application parts.

This file is key for abstracting the complexities of swap operations. The Raydium SDK communicates directly with the Solana blockchain, preparing and executing transactions that swap tokens within the specified liquidity pools.

Theindex.ts file

index.ts is the entry point script that combines the functionality implemented in RaydiumSwap.ts and the configuration specified in swapConfig.ts to perform or simulate a token swap. Below is the functionality provided by each segment of the script:

Swap initialization

An instance of RaydiumSwap is created to establish a connection to the Solana blockchain and prepare the wallet for transaction signing.

Pool key loading

It invokes loadPoolKeys from the RaydiumSwap instance to retrieve the necessary information from Raydium's liquidity pools.

Pool information retrieval

The script locates the specific liquidity pool required for the token swap using the findPoolInfoForTokens method, which uses the token addresses from the swapConfig.

Transaction preparation

A transaction for the swap is built using the getSwapTransaction method, passing in parameters such as the destination token address, the amount to swap, the retrieved pool information, and additional configuration like the maximum lamports for transaction fees and whether to use a versioned transaction.

Execution or simulation

Based on the swapConfig, the script executes the swap on the blockchain or simulates it to forecast the outcome without sending the transaction.

Transaction handling

  • If executing the swap, it sends the transaction through the appropriate method (sendVersionedTransaction or sendLegacyTransaction). It logs the transaction ID, which can be used to track the transaction on a Solana blockchain explorer like Solscan.
  • If simulating, it simulates the corresponding method (simulateVersionedTransaction or simulateLegacyTransaction) and logs the results, which can help debug or test before live execution.

Swap invocation

Finally, the swap function is called to initiate the swap process.

This script is a high-level workflow that dictates the swap process from start to finish, abstracting the lower-level details and ensuring that the user-facing process is streamlined and straightforward.

The swapConfig.ts file

The swapConfig.ts file holds the configuration settings for a token swap using the Raydium SDK on the Solana blockchain. This is where you set the parameters used throughout the swap process. Let’s detail the contents and role of each configuration option.

This configuration file exports an object swapConfig containing key-value pairs that define the parameters of the swap operation:

executeSwap

A boolean that determines whether to send the transaction (true) or to simulate it (false). This is useful for testing the swap process without committing real funds.

useVersionedTransaction

A boolean indicating whether to use Solana's VersionedTransaction format. This new transaction format can include additional metadata and is meant to be more future-proof.

tokenAAmount

The amount of the source token (in this case, SOL) that you wish to swap. The value 0.01 indicates that the swap will attempt to exchange 0.01 SOL.

tokenAAddress

The address of the source token, which is the token you are giving up in the swap, is set to the mint address of SOL, the native currency of the Solana blockchain.

tokenBAddress

The address of the destination token is the token you want to receive. In this example, the mint address corresponds to USDC.

maxLamports

The maximum number of lamports (the smallest unit of SOL) that you are willing to spend on transaction fees.

direction

Indicates the fixed side of the swap—in means that the tokenAAmount is the exact amount you will send, while out means it's the exact amount you wish to receive.

maxRetries

The number of retries allowed.

liquidityFile

The URL to a JSON file containing information about the available liquidity pools on Raydium. This is essential for the RaydiumSwap class to load pool keys and find the right pool for the swap.

How to use the project

To use this program for swapping tokens on the Solana blockchain with the Raydium SDK, follow these steps:

Configuration

  1. Open src/swapConfig.ts in your favorite code editor.
  2. Modify the swapConfig object to set up your desired swap parameters:
    • executeSwap: Set this to false if you wish to simulate the transaction before executing or true to execute the swap immediately. It’s set on the simulation by default.
    • useVersionedTransaction: Determine whether to use a versioned transaction (true) or a legacy transaction (false). Versioned transactions are the new standard and are recommended.
    • tokenAAmount: Specify the amount of the source token you wish to swap. For example, 0.01 if you're swapping 0.01 SOL.
    • tokenAAddress: Enter the source token's mint address. By default, it's set to SOL's mint address.
    • tokenBAddress: Enter the mint address of the destination token. The default is set to USDC's mint address.
    • maxLamports: Define the maximum fee you will pay for the transaction, which is measured in lamports.
    • direction: Choose 'in' to fix the amount of the source token or 'out' to fix the amount of the destination token.
    • liquidityFile: This should point to the Raydium liquidity pool information file. It's preset to the Raydium liquidity pools.

Execution

With your swap configuration set:

  1. Navigate to your terminal.

  2. Ensure you're in the root directory of the cloned repository.

  3. Run the swap script using Yarn:

    yarn swap
    

Process flow

When you run yarn swap, the program will:

  • Load the necessary pool keys from Raydium's API based on your liquidity file URL.
  • Use the token addresses from swapConfig to identify the appropriate liquidity pool.
  • Create a transaction with the specified parameters, ready to swap the defined tokenAAmount of tokenAAddress for tokenBAddress.
  • Depending on your executeSwap configuration, the program will either:
    • Simulate the transaction and output the results in the console for review.
    • Execute the swap transaction on the Solana blockchain and provide a transaction ID for tracking.

Transaction tracking

If you execute the swap, you can track the transaction on a Solana blockchain explorer using the provided transaction ID. For example:

https://solscan.io/tx/YOUR_TRANSACTION_ID

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You can see an example of a swap completed with this program on Solscan.

Conclusion

In this guide, we navigated the process of executing token swaps on Solana with the Raydium SDK. From setting up the environment to understanding the codebase, we covered the essentials needed to jumpstart your DeFi activities on one of the fastest blockchains.

We walked through the cloning of the repository, installing dependencies, and dissecting the purpose of each TypeScript file, giving you the clarity to configure and execute swaps with ease. The swapConfig.ts empowers you to fine-tune swap parameters, while RaydiumSwap.ts and index.ts facilitate the execution and simulation of swaps, complete with transaction tracking capabilities.

By the end of this tutorial, you've gained the ability to conduct token swaps confidently, making the most of Solana's rapid and cost-effective ecosystem. This foundation sets you up for continued growth and exploration in the vibrant landscape of decentralized finance.