Pump.fun, a well-known memecoin launchpad on Solana, has officially launched its own DEX AMM PumpSwap.

Pump.fun, a well-known memecoin launchpad on Solana, has officially launched its own DEX AMM PumpSwap.

Pump.fun, a well-known memecoin launchpad on Solana, has officially launched its own DEX AMM, PumpSwap.

The announcement of the launch was made yesterday by the platform’s official X profile.

The new DEX is already active, since from yesterday all the tokens that complete their bonding curve will migrate directly to PumpSwap.

Pump.fun, before launching its DEX, used Raydium, the main DEX on Solana, but now it will use only PumpSwap.

Note that in less than 24 hours the new DEX has already surpassed 15 million dollars of TVL, even though they pale in comparison to the 74 million dollars of daily volume on Pump.fun.

Note that the current volumes are moreover very low, because the peak was reached on January 24 above 390 million dollars.

Raydium, instead, on the day of the launch of Trump’s memecoin on Solana reached the incredible figure of 11 billion dollars in daily trading volume. Currently, it has a TVL exceeding 1.1 billion dollars.

On the new DEX by Pump.fun, instant migrations with zero fees have been enabled, and there will be greater liquidity compared to the platform.

Furthermore, it has been announced that soon the new DEX will also enable revenue sharing with the creators.

PumpSwap V1 is a decentralized exchange on Solana that operates similarly to Raydium V4 and Uniswap V2, thanks to its Constant Product AMM that allows the creation of liquidity pools for free.

Pump.fun states that it wanted to create its own DEX because their goal is to create an environment as smooth as possible for token trading, and until today an important point of friction has been precisely the migrations from the platform to the DEX, because they slowed down the momentum of new tokens and introduced unnecessary complexities for new users.

Now, however, the migrations on the new DEX are instantaneous and free.

This launch also moves towards the creation of a more sustainable ecosystem, given that soon a percentage of the DEX revenues will be shared with the token creators.

The exchange fees on PumpSwap are 0.25%, of which 0.20% goes to the liquidity providers, while 0.05% remains with the protocol.

The reaction of Raydium occurred already the day before the launch of PumpSwap.

This is the launch of an alternative platform to Pump.fun called LaunchLab.

In this way, he hopes to feel little impact from the abandonment by Pump.fun. It should be noted that in the last 30 days, a significant 41% of Raydium’s swap fees came from tokens created on Pump.fun.

Moreover, LaunchLab should be a direct fork of Pump.fun, even though it has not been launched yet.

An anonymous source within the Raydium development team revealed that LaunchLab had actually been in development for months, but the project had been temporarily shelved to avoid creating direct competition with Pump.fun.