Pump.fun Ditches Raydium, Launches Its Own DEX: PumpSwap

Pump.fun has launched its own decentralized exchange (DEX), PumpSwap, moving away from Raydium as the default platform for trading newly bonded memecoins. Starting March 20, tokens that complete the bonding process on Pump.fun will now launch directly on PumpSwap.

Introducing PumpSwap, Pump’s new native DEX

beginning NOW all coins that complete their bonding curve will migrate directly to PumpSwap

PumpSwap enables
– instant migrations
– 0 migration fees (down from 6 SOL)
– more liquidity
– creator revenue sharing (coming soon)

& more 👇 pic.twitter.com/T9BkmmaVVS

— pump.fun (@pumpdotfun) March 20, 2025

Previously, tokens were migrated to Raydium, one of Solana’s most active DEXs, due to its large memecoin trading volume. However, Pump.fun has stated that this process added “needless complexity” and slowed down the momentum of new coins. With the launch of PumpSwap, migrations are now automatic and free, removing the 6 SOL migration fee that was charged under the previous system.

Automated Market Maker and Fee Structure

PumpSwap is built as an automated market maker (AMM), functioning in a similar way to Raydium V4 and Uniswap V2. It uses a constant product formula and allows users to create and trade in liquidity pools. The platform supports all tokens listed on PumpSwap and offers a no-cost liquidity pool setup.

Each transaction on PumpSwap carries a 0.25% trading fee. Of this, 0.20% goes to liquidity providers, and 0.05% is allocated to the protocol. This fee model aligns with other AMMs and creates a revenue source for the new exchange.

Pump.fun also announced that PumpSwap will soon include a revenue-sharing model. A portion of the protocol’s earnings will be distributed to token creators. This feature, borrowed from rival platform GoFundMeme, aims to connect creators with their communities and encourage more structured launches.

Security Measures and Open-Source Plans

Pump.fun emphasized security during the development of PumpSwap. The platform has completed nine independent audits conducted by security firms. While no timeline was shared, the team stated its intention to open-source the PumpSwap program in the future to promote transparency.

In a post shared on March 20, Pump.fun stated that its primary goal has always been to simplify the trading experience for users. The team noted that the previous migration process caused delays and added unnecessary steps, which disrupted the growth of new tokens. With the introduction of PumpSwap, they confirmed that token migrations now occur automatically and at no cost.

Revenue Decline and Industry Competition

Pump.fun’s DEX launch follows a steep revenue decline. The platform’s average daily revenue fell from over $4 million in January to roughly $1 million by mid-March, according to DeFiLlama data. This drop came amid a wider cooldown in memecoin trading activity, influenced by events like the LIBRA token collapse and broader market skepticism.

Despite the downturn, Pump.fun remains among the top revenue-generating protocols on Solana. The platform also faces increased competition, as Raydium recently announced plans to build its own memecoin launchpad named LaunchLab. Other emerging platforms like Daos.fun, GoFundMeme, and Pumpkin are also entering the market.