| Key Points: – Pump.fun launches DEX PumpSwap to enable instant migration of tokens and remove the previous 6 SOL fee. – The move follows a 60% revenue drop in 30 days, as the memecoin market cools. – PumpSwap uses an AMM model similar to Raydium V4 and Uniswap V2, charging a 0.25% trading fee. – Pump.fun plans to introduce creator revenue sharing and open-source PumpSwap in the future. |
PumpSwap’s launch follows a 63% revenue decline for Pump.fun amid a downturn in memecoin trading. According to DeFi Llama, the platform’s revenue fell from $76.7 million to $23.18 million in 30 days, mirroring an industry-wide contraction in speculative asset trading.
Additionally, Pump.fun aims to expand accessibility beyond crypto-native users, aligning with a broader DeFi shift toward retail adoption. The launch of PumpSwap could reinvigorate Solana’s memecoin market, which saw trading volumes decline sharply after the LIBRA token scandal wiped out $4.5 billion in market value.
Pump.fun Launches DEX PumpSwap to Overhaul Token Migration
Pump.fun, a leading Solana-based memecoin launchpad, has officially introduced PumpSwap, its in-house decentralized exchange (DEX). This launch aims to remove the inefficiencies of the previous token migration process, which required transferring liquidity to Raydium and paying a 6 SOL migration fee.
With PumpSwap, token migration will now be instant and fee-free, allowing for seamless trading and improved liquidity.
Pump.fun co-founder Alon Cohen explained the rationale behind this shift on X, stating:
“Our goal from day 1 was to build a product that could escape the crypto bubble and capture the attention of millions of non-crypto natives…PumpSwap is a crucial step that will help grow the ecosystem through a more accessible, rewarding, and sustainable mechanism.” Alon Cohen said on X.
The DEX launch comes at a critical time, as Pump.fun’s revenue has plummeted 63% in the past month, largely due to declining memecoin trading activity.
PumpSwap’s AMM Model and Revenue-Sharing Plans
PumpSwap operates as an Automated Market Maker (AMM), utilizing a constant product formula, similar to Raydium V4 and Uniswap V2. The platform enables users to:
- Create liquidity pools for free
- Trade any token on the platform
- Contribute to existing liquidity pools
Each trade incurs a 0.25% fee, with 0.20% allocated to liquidity providers and 0.05% going to the protocol. This aligns PumpSwap with established DEXs while ensuring sustainable incentives for market participants.
Additionally, Pump.fun has plans to introduce a revenue-sharing model where a portion of platform earnings will be redistributed to token creators, fostering a more sustainable ecosystem. To bolster security, PumpSwap has undergone nine independent audits and is expected to be open-sourced soon, further reinforcing transparency and user protection.
Pump.fun Launches DEX PumpSwap Amid Declining Revenue and Rising Competition
Pump.fun launches DEX PumpSwap comes as the memecoin market faces waning interest following the LIBRA token scandal. The LIBRA crash in February, triggered by insider trading concerns, wiped out $4.5 billion in market value, leading to a sharp decline in overall memecoin trading volume.
Pump.fun saw its monthly revenue drop from $76.7m to $23.18m within 30 days, despite maintaining its position as the 7th largest revenue-generating protocol on Solana.
The competition is also heating up. Raydium recently announced plans to launch its own memecoin platform, LaunchLab, signaling a potential rivalry between the two platforms. Raydium’s RAY token dropped 10.28% immediately following PumpSwap’s launch, reflecting market reactions to the growing competition.
While the future of memecoins remains uncertain, Pump.fun is aggressively adapting, positioning PumpSwap as a key pillar in its evolving ecosystem. With additional developments expected—such as potential CEX partnerships and token sales—Pump.fun is making a strong push to maintain its dominance in the Solana memecoin sector.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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