Pump.fun Launches Native DEX "PumpSwap," Aiming to Revitalize Memecoin Trading

Pump.fun , the Solana-based platform known for its rapid memecoin launches, has announced the release of its own decentralized exchange (DEX) called PumpSwap.

PumpSwap, built on the Solana blockchain, aims to provide a more seamless and efficient trading environment for tokens launched on Pump.fun. The platform announced the launch via a post on X (formerly Twitter), saying: "Beginning NOW all coins that complete their bonding curve will migrate directly to PumpSwap."

A key feature of PumpSwap is the elimination of the previous 6 SOL migration fee associated with moving tokens to external DEXs like Raydium. Pump.fun highlighted the friction caused by these migrations: "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."

PumpSwap V1 operates as an automated market maker (AMM), similar in functionality to Raydium V4 and Uniswap V2, utilizing a constant product formula for facilitating trades. The platform allows users to create their own liquidity pools at no cost, contribute to existing pools, and trade all tokens listed on PumpSwap.

The DEX incorporates a standard fee structure, with each trade incurring a 0.25% fee. This fee is currently distributed with 0.20% allocated to liquidity providers and 0.05% to the protocol.

Pump.fun also announced a forthcoming "Creator Revenue Sharing" model, which will adjust this fee distribution to allocate a portion of protocol revenue to token creators. This initiative seeks to incentivize the development of higher-quality projects and better align the interests of creators with their communities.

The launch of PumpSwap arrives during a noticeable cooling of the memecoin frenzy that had previously fueled significant activity on platforms like Pump.fun. The memecoin market has been in a downturn following controversies such as the rapid rise and subsequent collapse of the LIBRA memecoin, and backlash over Pump.fun's failure to curb increasingly harmful and disturbing content.

This cooling trend is reflected in Pump.fun's revenue, which fell by over 50% in the 30 days leading up to the announcement, according to a Dune dashboard , although the platform still remains a significant revenue generator on the Solana blockchain.

Pump.fun emphasized the importance of security in the development of PumpSwap, stating that the platform has successfully completed nine independent audits from security firms including Pashovgroup, osec_io, bl0ckpain, and sec3dev. The platform also has long-term plans to open-source the PumpSwap program to further enhance transparency and security.

Beyond memecoins, PumpSwap aims to facilitate the trading of a wider variety of digital assets. The platform announced that users can now trade select tokens from verified partners, many of whom are bridging to the Solana ecosystem for the first time. More partnerships and token listings are expected to follow.

In a further effort to enhance the security and robustness of the new DEX, Pump.fun also announced an auditing competition with CantinaXYZ, featuring over $2,000,000 in prizes.