Memecoin Generator Pump.fun Launches New DEX PumpSwap on Solana

As Pump.fun struggles with declining monthly revenue (around 60%), the memecoin generator has decided to launch PumpSwap, a new decentralised exchange (DEX)

Pump.fun, the well-known memecoin generator, is launching its own decentralised exchange (DEX) on Solana, named PumpSwap. This move comes amid a struggle with declining monthly revenue (around 60%).

Announced on X (formerly Twitter), PumpSwap's interface is designed similarly to Raydium V4 and Uniswap V2, utilizing an automated market maker (AMM) algorithm with a constant product formula.

This allows users to:

• Create new liquidity pools at no cost.

• Join existing pools and provide liquidity to any token.

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Each swap will involve a 0.25% fee, with 0.20% going to liquidity providers and 0.05% going to Pump.fun, which will be used for protocol maintenance and new feature development.

The team also plans to launch a Creator Revenue Sharing feature to distribute a portion of protocol fees to token creators, aiming to encourage higher-quality launches.

Funny enough, Raydium recently disclosed its plans to launch its own memecoin launchpad, as first reported by crypto outlet Blockworks. It will be called LaunchLab, signaling a shift from partner to rival status, highlighting the ongoing race to attract memecoin projects on Solana.

Even funnier is that Pump.fun will not direct liquidity to Raydium, but tokens that complete their bonding curve will now migrate directly to PumpSwap, removing the 6 SOL migration fee.

“This promotes the most frictionless environment for trading coins and provides the best experience for traders and liquidity providers,” the team said.

These advancements come in an attempt to save monthly revenues, given that the platform's 30-day revenue fell by more than 50% in SOL terms from mid-January to mid-February, mirroring a broader decline in memecoin trading volumes.

Not just bad volumes, but bad luck as well. Pump.fun's X account recently got hacked and used to promote fake governance tokens, hitting the platform's reputation.