Solana-based memecoin launchpad Pump.fun has introduced PumpSwap, a decentralized exchange enabling instant migration of tokens after their bonding curve phase, bypassing Raydium and slashing associated fees.
Background:
- Pump.fun has launched PumpSwap, its own decentralized exchange (DEX), marking a strategic shift away from Solana-based AMM Raydium for token graduation.
- Traditionally, Pump.fun tokens would migrate to Raydium after hitting a $69,000 market cap threshold. However, migration incurred a 6 SOL fee.
- With PumpSwap, tokens now automatically shift to the in-house DEX after completing their bonding curve — a pricing model where token price increases with demand.
- The DEX charges a 0.25% fee per trade, allocating 0.2% to liquidity providers and 0.05% to the protocol.
- PumpSwap is built on a constant product AMM model, similar to Uniswap v2 and Raydium v4.
Why should you pay attention?
- Pump.fun’s shift to an internal DEX removes reliance on Raydium, one of Solana’s largest exchanges with over $1.1 billion in total value locked.
- Eliminating the 6 SOL migration fee reduces barriers for creators and could encourage broader token launches.
- The move also sets the stage for potential creator revenue sharing in the future, increasing monetization opportunities for project founders.
- This launch arrives as Pump.fun experiences a 94% drop in trading volume and fewer token graduations to Raydium since early 2025.
- The announcement reflects a broader competitive dynamic between Pump.fun and Raydium, both reportedly developing overlapping features like AMMs and memecoin creation platforms.
Who said what?
- Alon Cohen, Co-founder of Pump.fun, stated:
“Our goal from day 1 was to build a product that could escape the crypto bubble and capture the attention of millions of non-crypto natives. PumpSwap is a crucial step that will help grow the ecosystem through a more accessible, rewarding and sustainable mechanism.”
- In their official X post, Pump.fun emphasized that PumpSwap removes migration friction and will soon support creator-focused monetization tools.
Zooming out:
- PumpSwap’s launch comes at a time of transition for both Pump.fun and the broader Solana memecoin ecosystem.
- Once a memecoin sensation, Pump.fun saw a sharp volume decline this year, putting pressure on its growth strategy.
- Meanwhile, Raydium — once the go-to secondary marketplace for graduated tokens — appears to be responding with its own memecoin tooling via LaunchLab.
- The launch of PumpSwap not only positions Pump.fun to reclaim some of its earlier momentum but also signals the growing trend of DeFi platforms consolidating their tech stacks to retain users, reduce dependency, and foster in-house liquidity ecosystems.
- As competition in the Solana memecoin and DEX space heats up, users can expect faster innovation — and potentially more fragmentation.
