Solana’s Meme Coin Launchpad Pumpfun Rolled Out Its Own DEX — PumpSwap
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Pumpfun, a leading meme coin launchpad based on Solana’s network, recently surprised crypto industry participants by rolling out its native new decentralized exchange.
Known as PumpSwap, its DEX’s launch represents a strategic move aimed at streamlining the trading experience for crypto industry participants, and reducing their dependency on other platforms, such as Raydium.
PumpSwap emerged as an Automated Market Maker (AMM) decentralized exchange, and it can provide seamless trading and liquidity for tokens launched on Pumpfun. The previous model sent newly minted tokens to Raydium for trading, which came with high fees of 6 SOL involved. PumpSwap, on the other hand, will allow developers who launched the tokens to immediately move their funds with no fees attached.
What Does The New DEX Have To Offer?
The new platform will allow users to create a liquidity pool at zero cost, or contribute to existing pools, as well as trade any of the listed tokens with a 0.25% transaction fee. However, of this amount, 0.20% will be allocated to liquidity providers, while only 0.05% will go to the protocol itself.
Other advantages of PumpSwap include a new monetization model for creators which introduced a creator revenue-sharing model; enhanced security and transparency, elimination of fees and delays, and finally, the appearance of a major competitor to Raydium.
The recent rise of meme coin culture in the SOL ecosystem has actually driven demand for new dedicated launchpads and trading platforms, and PumpFun’s decision to integrate a DEX into its service will enhance user autonomy and make the DEX work as a one-stop-shop for token launching, trading, and liquidity provision.
Given that Raydium is actively developing its own meme coin-related infrastructure, the competition in the SOL ecosystem is likely to blow up. This is widely considered as a good thing, as competition fuels innovation and allows the overall trading experience on Solana to improve.
