Pump.fun Launches Its Decentralized Exchange (DEX) PumpSwap to Compete with Orca and Raydium

Pump.fun, a popular token launchpad on Solana, has launched its decentralized exchange (DEX), dubbed PumpSwap, to compete with the likes of Orca and Raydium.

Pump.fun, a prominent token launchpad on Solana, has unveiled its decentralized exchange (DEX), named PumpSwap, to compete with existing platforms like Orca and Raydium. The launch comes three weeks after rumors surfaced about Pump.fun deploying its automated market maker. This speculation followed a substantial drop in Raydium's token price.

In a surprising move, Raydium recently announced plans to introduce its own meme coin launchpad in a direct bid to rival Pump.fun.

However, with the launch of PumpSwap, token migration time will be significantly reduced, and the associated cost, usually six SOL, will be completely eliminated. Moreover, PumpSwap will serve to improve liquidity for the deployed tokens.

Currently, it takes approximately ten minutes for a token whose market cap has reached $100,000 on Pump.fun to be migrated to a decentralized exchange. Nonetheless, according to the latest statement by the project, token migration to PumpSwap will now be completed instantly.

Announcing Revenue-Sharing Model

Since its inception in January 2024, Pump.fun has generated an estimated $600 million in revenue. Nonetheless, many have criticized the protocol's developer for failing to share this amount with token creators. In response to this feedback, Pump.fun has announced that a large portion of the fees collected on PumpSwap will be distributed among coin creators.

Although the token launchpad has yet to disclose the specific date for implementing this revenue-sharing model, an unidentified source informed crypto media house Decrypt on Thursday that it could be launched in less than a month's time.

Major Tokens Available on PumpSwap Today

In addition to the newly migrated tokens, several major coins are already open for trading on PumpSwap. Among them are PENGU, Jupiter's native token JUP, and USDC.

It's noteworthy that token creators who didn't launch their projects through Pump.fun can still migrate them to PumpSwap. To enable trading, they will need to create a liquidity pool on the new decentralized exchange.

After a Recent Cyberattack, Pump.fun to Run a Bug Bounty Program

Following a recent incident where nearly $2 million was stolen from Pump.fun in a cyberattack, the protocol is taking precautions this year. In a move to engage Web3 developers further, Pump.fun plans to host a bug bounty program with a reward pool of $2 million. The program aims to encourage developers to identify and report any vulnerabilities present in the code of both PumpSwap and the token launchpad.