How Liquidity Works on Raydium — And How Jeets & Farmers Are Wrecking It
How Liquidity Works on Raydium — And How Jeets & Farmers Are Wrecking It
In the world of decentralized finance, platforms like Raydium on Solana are supposed to represent the future: fast, efficient, and community-driven. But behind the scenes, two destructive forces are quietly poisoning the system — jeets and yield farmers who ignore market signals and chart dynamics entirely.
Let’s break it down.
Understanding Liquidity on Raydium
Raydium combines an Automated Market Maker (AMM) with access to Serum’s order books. Users provide liquidity by depositing token pairs (like SOL/USDC) into pools, and in return they earn a share of the swap fees — and potentially extra rewards via farming.
It’s a powerful model, built to reward long-term participation and ecosystem health.
But it falls apart when the wrong type of user dominates the game.
Jeets: The Panic Sellers Killing Momentum
“Jeets” are the type of traders who hit the sell button at the first sign of red. They ignore fundamentals, charts, or community goals — they’re here to make a quick buck and run. When the price dips slightly, they mass exit like cowards, causing:
- Slippage and price crashes
- Chart manipulation
- Loss of confidence in new tokens
Jeets don’t HODL. They don’t contribute. They just destabilize charts and wreck investor morale. When too many of them are involved in a token launch or LP, no amount of solid fundamentals can save the price.
Farmers: Mercenary Liquidity Providers
Then come the farmers — not the hardworking DeFi builders, but the opportunists who jump from pool to pool, dumping liquidity the moment APR drops. They farm rewards without giving a damn about the token’s utility or vision.
Their actions have serious side effects:
- Liquidity drain, leaving pools shallow
- False confidence, since TVL spikes then crashes
- Chart confusion, since price movements don’t reflect organic market sentiment
The result? Projects struggle to build sustainable communities because the charts are being gamed by people who treat DeFi like a casino.
The Real Problem: Ignoring Chart Dynamics
Both jeets and short-term farmers operate without looking at charts, trends, or momentum indicators. They don’t respect support levels. They don’t care about breakouts or volume signals. Their behavior breaks the system in three ways:
- No trust in the chart — Technical patterns lose meaning when irrational actors dominate.
- Rugfeel without a rug — Even legit projects look like rugs due to erratic LP behavior.
- Kills confidence in early entries — Retail investors are afraid to buy in, knowing any pump may get nuked by farmers and jeets.
Time to Call It Out
If you’re building or investing in a serious project on Raydium, you need to recognize these roles for what they are — toxic. Unless the community starts rejecting this behavior and building smarter, AI-powered tools to detect and filter out bad actors, DeFi will stay stuck in this cycle of volatility and mistrust.
The Way Forward
- Educate holders: Let them know how to read charts, follow trends, and HODL when needed.
- Design smarter incentives: Build LP models that reward stability, not just high APR.
- Call out jeets & dumpers: Don’t normalize cowardly exits or mercenary farming.
💬 The future of DeFi depends on intelligent participation — not just liquidity chasing. At Algoritha A.I, we aim to empower smarter decision-making with AI-driven analytics and real-time insights.
