Leading memecoin launchpad Pump.fun launches PumpSwap, a new decentralized exchange (DEX) designed to to make token migrations instant and free.

Pump.fun said Thursday it is launching PumpSwap, a new decentralized exchange (DEX) designed to to make token migrations instant and free.

Leading memecoin launchpad Pump.fun said Thursday it is launching PumpSwap, a new decentralized exchange (DEX) designed to make token migrations instant and free.

The platform will implement creator revenue sharing, which will redistribute a portion of protocol revenue to token creators. Given how popular memecoin trading is, the platform is likely to attract users.

The goal behind PumpSwap’s creation is to increase liquidity for traded coins, making them easier to buy and sell, thus improving users’ trading experience. Pump.fun stated that its original goal was to build “the most frictionless environment for trading coins.”

“With PumpSwap, we expect to solve the major point of friction that slows a coin’s momentum,” Pump.fun stated.

The platform operates similarly to popular platforms Raydium V4 and Uniswap V2, using an automated market maker (AMM) with a constant product formula.

Coins completing their bonding curve, which is a mechanism to manage token pricing and liquidity on Pump.fun, will automatically migrate to PumpSwap, removing the previous delays and the 6 SOL migration fee. This feature is expected to boost trading momentum and user satisfaction.

Each trade on PumpSwap carries a 0.25% fee, which will be split between liquidity providers (0.20%) and the protocol (0.05%), Pump.fun stated. However, the distribution is subject to change as Pump.fun plans to implement a revenue-sharing model in the future.

The team stated that a feature—where a portion of protocol revenue is deployed to coin creators—will be deployed soon, aimed at incentivizing robust community development and high-quality project launches.

“If it succeeds, millions of dollars will go towards aligning creators with their communities and incentivizing higher quality launches,” Pump.fun noted.

On the security side, Pump.fun said that PumpSwap has completed nine security audits from partners including Pashov Group, OSEC, Blockpain, and Sec3. The exchange allows users to create liquidity pools at no cost, add to existing pools, and trade tokens from verified partners, including projects newly bridged to Solana.

PumpSwap is not limited to meme coins; it also features verified partner tokens, some of which are making their Solana debut, including 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 Faces Competition from Raydium

The launch of PumpSwap comes after Raydium introduced LaunchLab, its own meme coin launchpad that adopts a similar bonding curve to Pump.fun.

Raydium’s platform will allow third-party interfaces to set fees, support multiple quote tokens, and integrate with Raydium’s liquidity provider locker to ensure fee security.

The separate developments of Pump.fun and Raydium raise questions about their relationship as it appears to have weakened since Pump.fun was rumored to start testing its own AMM earlier this year.

If Pump.fun fully transitions to its own AMM, it could reduce its reliance on Raydium, retaining liquidity and fees within its ecosystem, which has already impacted Raydium’s revenue and token value.

Pump.fun and Raydium initially had a strong, symbiotic relationship. Pump.fun relied on Raydium to provide liquidity for tokens launched on its platform, transferring tokens to Raydium’s trading pools once they reached a $69,000 market cap.

Before Raydium’s LaunchLab, a number of memecoin launchpads had been launched to compete with Pump.fun.

Some successes were achieved, such as Moonshot, which gained popularity after Trump launched his official meme token. The platform once joined the top 10 finance app on on the U.S. Apple App Store following TRUMP launch.

Nevertheless, these platforms lose traction as the memecoin market dries up. Even Pump.fun, the major launchpad for meme coins, faces challenges

Dune Analytics data shows that Pump.fun’s graduation rate, which measures the number of tokens that successfully move from the incubation phase to full transactability, has been below 1% for over a month.