Popular meme coin launcher Pump.fun has unveiled PumpSwap, a decentralized exchange (DEX) built on Solana.

The new platform promises frictionless token migrations with zero fees and enhanced liquidity, positioning itself to challenge Raydium directly, Solana’s dominant DEX.

What PumpSwap Brings to the Table

In a post on X introducing the service, Pump.fun stated that it is intended to resolve one of the main pain points for users of its platform: token migrations.

Previously, tokens graduating from the meme coin launchpad to Raydium faced a fee of 6 SOL, or about $950. Now, the process will be instant and free, allowing projects to maintain their momentum without added complexity.

The DEX will also operate on a constant product automated market maker model resembling Raydium V4 and UniSwap V2. Users can create or add to liquidity pools and easily trade all PumpSwap-supported tokens.

Another feature of the platform mentioned in the post is the upcoming Creator Revenue Sharing model. Pump.fun plans to give a portion of the protocols revenue to token creators, encouraging higher-quality launches. This initiative could channel millions into supporting meme coin developers and their communities.

Each trade on PumpSwap incurs a 0.25% fee, with 0.20% going to liquidity providers and 0.05% retained by the protocol. However, the fee structure will adjust once the revenue-sharing program launches to include creators.

Token Integration

Beyond meme coins, Pump.fun’s new DEX has partnered with major token projects that have bridged to Solana, including Pudgy Penguins’ PENGU, Coinbase’s cbBTC, and Aptos’ APT.

This strategy directly threatens Raydium’s dominance, with data from DefiLlama showing its total value locked (TVL) dropping to $1.157 billion, down from a high of $2.969 billion in January. When news first emerged that Pump.fun was developing a native exchange, Raydium’s RAY token plunged 29% as the market reacted to the potential ramifications of the move made by the crypto launching platform.

As the leading DEX on Solana, Raydium didn’t take the news lying down. On March 19, reports emerged that it was also building a meme coin launcher to rival Pump.fun. RAY’s price shot up 28% on this occasion, going from $1.60 to $2.05.

PumpSwap’s launch seems to have shaken the token again, pushing it down 13% from a high of $1.87 to a low of $1.62. However, it has since clawed back some value and is currently trading at $1.73, which is 7% below its price from 24 hours ago.