- Pump.fun has unveiled PumpSwap, its proprietary decentralized exchange (DEX), utilizing a constant product automated market maker.
- PumpSwap will facilitate zero-cost token migrations and aims to implement revenue sharing for creators.
- This launch follows a recent announcement from a competing Solana DEX regarding the introduction of LaunchLab, a project akin to Pumpfun.
On Thursday, Pumpfun, the generator of Solana meme coins, revealed the rollout of PumpSwap, a native decentralized exchange designed for trading meme coins and various SOL-based cryptocurrencies. This launch comes in the wake of an announcement from a rival platform about its upcoming token generator feature similar to Pumpfun.
Pumpfun introduces PumpSwap DEX
PumpSwap will operate using a constant product Automated Market Maker, akin to Uniswap V2 and Raydium V4, allowing users to provide liquidity and trade meme coins alongside other assets on the Solana network. According to Pumpfun, PumpSwap already supports several tokens, including USDe, PENGU, SEI, Jupiter (JUP), and Wormhole (W).
The trading fees on PumpSwap will be set at 0.25% per transaction, with 0.20% allocated to liquidity providers and 0.05% retained by the protocol itself. However, Pumpfun has indicated intentions to adjust its fee structure in order to share revenue with token creators.
“In the near future, a portion of our protocol revenue will be distributed to coin creators. If successful, this could lead to millions being directed towards fostering stronger connections between creators and their communities, promoting the launch of higher-quality projects,” stated Pumpfun.
PumpSwap will also allow for the seamless migration of tokens that have fulfilled their bonding curve.
“Migrations often create significant hurdles, hampering a coin’s progress and adding unnecessary complexity for newcomers,” commented Pumpfun.
Before the launch of PumpSwap, Raydium served as the main platform for migrating tokens on Pumpfun that completed their bonding curves. With PumpSwap now operational, there is potential for a significant shift in trading activity away from Raydium.
The rollout of PumpSwap coincides with recent news of Raydium preparing to launch LaunchLab, a token generator that bears similarities to Pumpfun’s offering.