Pump.fun Launches Pumpswap DEX

Pump.fun launched Pumpswap, its proprietary decentralized exchange (DEX) on the Solana blockchain, to facilitate the trading of tokens created through its platform

Pump.fun, the Solana-based meme coin launchpad, launched its own decentralized exchange (DEX), called Pumpswap, on March 20.

Pumpswap will charge a 0.25% transaction fee, with 0.20% going to liquidity providers and 0.05% to the protocol. The DEX will also automatically migrate tokens that complete their bonding curves on Pump.fun, streamlining trading within its decentralized finance (DeFi) ecosystem.

Future plans include a revenue-sharing model for creators, though Pump.fun did not disclose details.

“From day 1, our goal was to create the most frictionless environment for trading coins. Migrations were a major point of friction – they slow a coin’s momentum and introduce needless complexity for new users. Now, migrations happen instantly and for free,” the team said on X.

Pump.fun, founded by Noah Tweedale, Alon Cohen, and Dylan Kerler, has become a dominant Solana token launchpad, launching over 5.5 million meme coins. The platform charges a 1% trade fee and a 1.5 SOL graduation fee for tokens reaching $90,000 in market cap, generating an estimated $602 million in transaction fees.

The new DEX aims to reduce reliance on external exchanges like Raydium, which are historically used by Pump.fun tokens post-launch. Pumpswap could shift trading volume, impacting competitors like Balancer, and consolidate Solana’s position as a meme coin hub. Pump.fun already accounts for 70% of Solana token launches and 56% of its DEX volume.

However, Pump.fun could face regulatory challenges. The platform was sued in New York in January for selling unregistered securities, and it banned UK users in December following an FCA notice. Pump.fun coins also have a 98.6% failure rate according to metrics collected by Dune Analytics.