Pump.Fun Launches PumpSwap DEX to Compete with Raydium

The new platform aims to directly compete with Raydium, the leading DEX in Solana, by offering improved liquidity and seamless token migrations with no fees.

Pump.Fun, a cryptocurrency launching platform, unveiled its Solana-based decentralized exchange (DEX), PumpSwap. The new platform is set to compete directly with Raydium, aiming to offer superior liquidity and seamless token migrations at no cost.

Announcing the service in a post on X, Pump.Fun highlighted its goal of addressing a pressing issue faced by platform users—token migrations.

Tokens graduating from the meme coin launchpad to Raydium had to pay a fee of six SOL for the transfer. However, PumpSwap will offer free and instant migrations, allowing projects to continue seamlessly.

The DEX will operate on a continuous product automated market maker paradigm, similar to UniSwap V2 and the recently launched Raydium V4. Users will be able to add or create liquidity pools.

Another aspect of the platform that was covered in the post was the upcoming Creator Revenue Sharing concept.

Pump.Fun plans to give token developers a share of the protocol’s earnings to encourage stronger launches. This concept could see millions of dollars flowing to meme coin creators and communities.

Each trade incurs a fee of 0.25 percent on PumpSwap, with liquidity providers receiving 0.20 percent and the protocol keeping 0.05 percent. However, once the revenue-sharing plan is implemented, the fee schedule will be adjusted to include artists.

This move comes as Raydium’s total value locked (TVL) has dwindled from a peak of $3 billion in January to approximately $11.2 billion, according to DefiLlama data.

The initial reports about Pump.Fun threatened the company’s dominance.

As a result of the repercussions of the cryptocurrency launching platform’s decision, Raydium’s RAY token has declined in value by a third.