Pump.fun Launches Its Own Native Decentralized Exchange (DEX), PumpSwap, on the Solana Blockchain

The move comes after the platform saw its revenue drop by nearly 60% in the last month.

Digital token launchpad Pump.fun has launched its own native decentralized exchange (DEX), which will be rolling out on the Solana blockchain. The move comes after the platform saw its revenue drop by nearly 60% in the last month.

Announcing the launch of PumpSwap, the token launchpad highlighted the deliverables of the new product.

According to the announcement, the DEX will offer instant migrations, zero fees, increased liquidity, and a revenue-sharing feature.

"Introducing PumpSwap, Pump's new native DEX beginning NOW all coins that complete their bonding curve will migrate directly to PumpSwap," the platform announced via X.

"PumpSwap enables- instant migrations- 0 migration (down from 6 SOL)- more liquidity- creator revenue sharing (coming soon) & more."

It is crucial to note that the newly launched DEX shares a few similarities with the Raydium V4 and Uniswap V2 decentralized solutions through its Constant Product AMM.

The Pump.fun team explained that this new infrastructure will allow users to contribute to and create liquidity pools, as well as trade any token that is listed on the PumpSwap exchange.

"The core rationale behind the creation of PumpSwap is to achieve a frictionless environment for trading coins," the team explained.

"We recognize that the prior migration system introduced friction, potentially stalling the momentum of new tokens and presenting users with unnecessary complexities. This new system aims to solve these issues by providing instant and cost-free migrations."

In the meantime, Pump.fun explained that it is creating a more sustainable ecosystem besides the newly launched DEX. According to the project, the DEX will feature a revenue-sharing model for token creators, potentially distributing millions of dollars to these participants and their communities, thereby incentivizing the launch of higher-quality projects.

"Each trade on PumpSwap will incur a fee of 0.25%, allocated as follows: 0.20% to liquidity providers and 0.05% to the protocol," the team explained further on the transaction costs.