Pump.Fun Feeds on Raydium Lunch

Olumide Adesina•Friday, March 21, 2025•1 min read

Pump. Fun has introduced PumpSwap, a Solana-based decentralized exchange (DEX). The new platform aims to directly compete with Raydium, the leading DEX in Solana, by offering improved liquidity and seamless token migrations with no fees.

Pump.fun announced the service in a post on X, stating that it aims to address token migrations, a major issue for platform users.

Tokens that graduated to Raydium from the meme coin launchpad previously had to pay a charge of six SOL. The process will now be free and instantaneous, enabling projects to continue without further complications.

The DEX will likewise run on a continuous product automated market maker paradigm similar to UniSwap V2 and Raydium V4.

Users can add or create liquidity pools. Another aspect of the platform that was covered in the post was the upcoming Creator Revenue Sharing concept.

Pump.Fun plans to give token developers a cut of the protocol’s earnings to encourage stronger launches. This concept might use millions of dollars to assist meme coin creators and communities.

Each trade costs 0.25 percent on PumpSwap, with liquidity providers receiving 0.20 percent and the protocol keeping 0.05 percent. However, once the revenue-sharing plan is implemented, the charge schedule will be changed to include artists.

DefiLlama data showed Raydium’s total value locked (TVL) dropped from a peak of $3 billion in January to roughly $11.2 billion, indicating that this strategy threatened the company’s dominance when the initial reports about Pump.Fun surfaced.

Raydium’s RAY token depreciated by a third in value because of the repercussions of the cryptocurrency launching platform’s choice.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.