Pump.fun Launches PumpSwap DEX to Retain Liquidity, Boost Trading

Pump.fun has launched PumpSwap, its native decentralized exchange (DEX) on the Solana blockchain. This new platform is designed to facilitate the trading of meme coins and other Solana-based crypto tokens, eliminating the need for tokens to migrate to Raydium for secondary trading. The move comes as Pump.fun seeks to retain liquidity and fees within its ecosystem, following a significant decline in trading volume since early 2025.

PumpSwap operates similarly to Uniswap V2 and Raydium V4, enabling users to create and add to liquidity pools and trade listed tokens. The platform introduces a 0.25% trading fee, with 0.20% allocated to liquidity providers and 0.05% to the protocol. This fee structure aims to incentivize liquidity provision and support the protocol's development. Additionally, Pump.fun has removed the 6 SOL migration fee, setting the stage for future creator revenue sharing.

With its launch, PumpSwap has integrated various tokens beyond meme coins, enabling trading for Aptos ($APT), Tron ($TRON), Coinbase’s cbBTC, Ethena’s $USDe, $PENGU, and others. This expansion of token offerings aims to attract a broader user base and increase the platform's utility. The platform has undergone nine security audits and plans to make its program open-source, ensuring transparency and security for its users.

The launch of PumpSwap follows closely on the heels of Raydium's announcement of LaunchLab, a token generator that competes directly with Pump.fun. This strategic move by Pump.fun is likely aimed at retaining its user base and enhancing its competitive edge in the meme coin market. By offering a native DEX with features that address common pain points, such as migration friction, Pump.fun aims to provide a more seamless and efficient trading experience for its users.

The inclusion of revenue sharing with creators is also a notable development, as it could foster a more collaborative and incentivized ecosystem within the meme coin community. This feature is designed to reduce friction in the migration process, which has historically slowed down a coin's momentum and introduced unnecessary complexity for new users. Prior to the launch of PumpSwap, Raydium was the primary platform for migrating tokens on Pump.fun that had completed their bonding curve. With the introduction of PumpSwap, there is a potential for a significant shift in trading volume away from Raydium.

Overall, the launch of PumpSwap represents a significant step forward for Pump.fun, positioning it as a leading player in the Solana-based meme coin market. By offering a native DEX with features that address common pain points, Pump.fun aims to provide a more seamless and efficient trading experience for its users. The inclusion of revenue sharing with creators is also a notable development, as it could foster a more collaborative and incentivized ecosystem within the meme coin community.