Pump.fun Launches PumpSwap DEX, Competing Directly With Solana’s AMM

28-04-2025
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A major step forward in liquidity control has come as Pump.fun, a platform famous for its Solana-based meme coins, officially launched its decentralized exchange (DEX) called PumpSwap. The move is expected to significantly reduce the cost of moving tokens and usher in a decentralized future where both creators and investors benefit directly from the system.

PumpSwap – New Platform, New Vision
PumpSwap changes the way it operates by bringing all tokens that complete the bonding curve on Pump.fun directly to this new DEX, instead of relying on external liquidity pools like Raydium. The new platform not only reduces inefficiencies but also completely eliminates the high moving fee – previously up to 6 SOL – making it easier for new projects to grow.

PumpSwap also offers a less frictionless trading environment thanks to its Constant Product Automated Market Maker (AMM) model, similar to Raydium V4 and Uniswap V2. With a trading fee of just 0.25%, of which 0.20% goes to liquidity providers and 0.05% goes to the protocol, PumpSwap promises to be a competitive option for investors and projects.

Key Features of PumpSwap
Pump.fun has introduced a series of outstanding features of PumpSwap, including:
- Instant transfers without fees
- Increased liquidity for projects
- An upcoming revenue sharing model, allowing creators to benefit directly from the system

In addition, PumpSwap has also partnered with many projects outside of meme coins, including Pudgy Penguins ($PENGU), Aptos ($APT), Tron ($TRON), Coinbase's cbBTC, and others. This represents the platform’s ambition to scale beyond the traditional meme coin market.

Audits and Security
PumpSwap has undergone nine audits from reputable firms such as Pashov Group, OSEC, BlockPain, and Sec3. To enhance security, the platform also held a security testing competition with Cantina.xyz, awarding over $2 million for discovering security vulnerabilities.

Threats to Raydium
The launch of PumpSwap poses a major challenge to Raydium, one of the leading DEXs on Solana. Previously, tokens launched on Pump.fun had to rely on Raydium to provide liquidity. Now that PumpSwap has taken over this role, Raydium risks losing 30-50% of the trading volume from the Pump.fun ecosystem.

Raydium’s RAY token has plummeted since the PumpSwap rumors. Over the past 14 days, RAY’s price has dropped 23% to $1.64, with a subsequent drop of 6.9% in just one hour.

In response, Raydium is developing its own meme coin launch platform, LaunchLab, to compete directly with Pump.fun.

Future Directions and Challenges
Despite PumpSwap’s great potential, Pump.fun still faces legal issues. A class action lawsuit in New