phantom # wallet
After clicking on “Connect” to confirm, a small confirmation window appears that the connection was successful. You are then ready to use the Raydium dApp. It is quite similar to Ethereum’s Uniswap DEX.
Not only can you swap tokens on Raydium, but you can also deposit tokens in liquidity pools. For instance, a token pair SOL/USDC is a liquidity pool for traders who wish to trade for either SOL (Solana’s native currency) or USDC stablecoin.
In exchange for providing liquidity in such token pair pools, users receive SOL tokens as a reward. This principle is the core of decentralized finance, whether it applies to DEXes like Raydium or lending dApps like Solend. Reward yields vary depending on market conditions and demand. Here is what they typically look like on Solend.
Of course, to receive a loan, a collateral has to be deposited. This is expressed by the liquidation-to-value (LTV) metric, representing the percentage of collateral needed for one token borrowed. If the value of the LTV ratio reaches a certain threshold, the borrower faces liquidation of their collateral before they pay back the loan.
Such a process is equivalent to banking, but in the blockchain world, everything is more efficient and instantaneous because smart contracts do all the work automatically.
Nonetheless, before you can connect to any Solana dApp, you first have a funded Phantom wallet.
How to Fund a Phantom Wallet?
There are two ways to fund a Phantom wallet. One way is to directly transfer crypto funds from another wallet or a crypto exchange. For instance, if you were to exchange USDC for SOL on Binance, you would be able to send those SOL tokens directly to the Phantom wallet.