As a prominent platform in the memecoin sphere, Pump.fun announced its new project. launching PumpSwap is a fresh DEX crafted to facilitate free and instantaneous token shifts.
The platform is also setting up a creator revenue sharing scheme, potentially increasing trading volume by redistributing part of the earnings to those who create the digital tokens.
PumpSwap aims at boosting the fluidity of traded currencies, thus making transactions smoother and enhancing traders’ overall experience. At its core, Pump.fun’s mission is creating the least obstructive space for crypto trading.
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The inception of PumpSwap is anticipated to tackle a significant obstacle often hindering a currency’s growth. The system works similarly to noted platforms like Raydium V4 and Uniswap V2, relying on an AMM with a steady product structure.
Here comes PumpSwap, Pump’s newly launched decentralized exchange.
From this moment, all tokens completing their pricing structure will proceed directly to PumpSwap.
PumpSwap enables
– instant migrations
– 0 migration fees (down from 6 SOL)
– more liquidity
— upcoming feature: revenue sharing with creators& more 👇 pic.twitter.com/T9BkmmaVVS
— pump.fun (@pumpdotfun) March 20, 2025
Coins that finish their pricing phase on Pump.fun will be transitioned automatically to PumpSwap, getting rid of prior delays and the associated 6 SOL fee. This enhancement expects to spur trading dynamics and elevate user contentment.
Each transaction via PumpSwap incurs a small fee of 0.25%, divided between liquidity providers (0.20%) and the network itself (0.05%). Keep in mind, this could change since there's a plan for a revenue sharing model.
A feature to direct some of the network's income back to coin developers is soon to launch, with the aim of enhancing community growth and launching high-standard projects.
“Should this succeed, it could channel millions towards strengthening the bond between creators and their audiences, encouraging more quality in launches,” noted Pump.fun.
From a safety perspective, Pump.fun assures that PumpSwap has undergone nine comprehensive security checks from notable entities like Pashov Group, OSEC, Blockpain, and Sec3. The exchange presents features like costless liquidity pool creation, contributions to existing pools, and trading verified partner tokens including newly introduced assets to the Solana realm.
PumpSwap's reach isn't limited to meme coins. It accommodates approved partner tokens embarking on the Solana platform for the first time, like Tron’s TRX, Frax Finance’s FXS and frxUSD, Ethena’s USDe, Aptos’ APT, Plume Network’s PLUME, and Sei Network’s SEI.
Pump.fun is facing off with Raydium.
The debut of PumpSwap follows closely after Raydium introduced its own meme coin launchpad, LaunchLab, which employs a pricing mechanism akin to Pump.fun’s.
Raydium’s LaunchLab enables external tools to set fees, choose from various quote tokens, and link to Raydium’s security-enhancing liquidity locker.
The separate expansions of Pump.fun and Raydium stir speculation about their connection, which seems to be weakening since rumors of Pump.fun testing its AMM emerged earlier this year.
Should Pump.fun entirely pivot to its unique AMM, it might lessen its dependence on Raydium, preserving fees and liquidity within its ecosystem, which is already affecting Raydium’s profits and token valuation.
Initially, Pump.fun and Raydium enjoyed a symbiotic relationship, with Pump.fun using Raydium for liquidity support when token market caps hit $69,000.
Preceding Raydium’s LaunchLab, several memecoin launchpads surfaced competing with Pump.fun.
Some gained traction, like Moonshot, which rose in popularity when Trump launched his meme token on the platform, propelling it into the top 10 finance apps on the U.S. Apple App Store post-TRUMP launch.
Yet, as the memecoin market dwindles, these platforms, including Pump.fun, encounter hurdles.
Data from Dune Analytics reveals that Pump.fun's progression rate—which measures tokens advancing from incubation to full trading capability—has remained under 1% for the past month.
