Pump.fun launches native DEX, PumpSwap, with zero migration fees

Pump.fun launches native DEX, PumpSwap, with zero migration fees

  • 20.03.2025 14:00
  • coinjournal.net
  • Keywords: DeFi

Pump.fun launched PumpSwap, a DEX on Solana with zero migration fees. It supports memecoins and partner tokens, enhancing DeFi accessibility. The launch intensifies competition in Solana's DeFi ecosystem.

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Context

Analysis and Summary: Pump.fun Launches Native DEX (PumpSwap)

Key Facts and Data Points

  • Product Launch: Pump.fun introduced PumpSwap, a decentralized exchange (DEX) on the Solana blockchain with zero migration fees for tokens created via its launchpad.
  • Instant Migration: Migrating tokens from Pump.fun to PumpSwap is now instantaneous and free, compared to previous costs of up to 6 SOL.
  • AMM Model: PumpSwap uses a constant product automated market maker (CP-AMM) similar to Raydium v4 and Uniswap v2, enabling efficient trading.
  • Trade Fees: A 0.25% trade fee is applied, with:
    • 0.20% going to liquidity providers
    • 0.05% supporting protocol sustainability
  • Supported Tokens: PumpSwap supports a diverse range of tokens, including:
    • Memecoins: Pudgy Penguins (PENGU), Aptos (APT)
    • Partner Tokens: Tron (TRON), Jupiter (JUP), Sei (SEI), LayerZero (ZRO), Coinbase cbBTC, Ethena USDe, Frax FXS
  • Launch Timing: Launched on March 19, 2025, coinciding with Raydium’s memecoin factory launch.
  • Future Plans: Teased creator revenue sharing to align token creators’ interests with platform growth.

Market Implications

  • Revolutionizing Token Migration: PumpSwap eliminates migration fees and delays, streamlining the process for new tokens entering DeFi markets.
  • Enhanced Liquidity Access: By supporting multiple blockchains (e.g., Tron, Aptos), PumpSwap bridges cross-chain liquidity, expanding its utility in the DeFi space.

Competitive Dynamics

  • Intensified Competition on Solana: The launch of PumpSwap follows Raydium’s memecoin factory, signaling a competitive race to dominate Solana’s DeFi ecosystem.
  • Unique Value Proposition: PumpSwap differentiates itself with zero migration fees and instant token access, potentially attracting more users than competitors like Raydium.

Strategic Considerations

  • Cross-Chain Collaboration: Integrating partner tokens (e.g., Tron, Aptos) positions PumpSwap as a versatile liquidity hub.
  • Creator Revenue Sharing: This feature could incentivize token creators to list on PumpSwap, fostering long-term ecosystem growth.

Long-Term Effects

  • Sustainability Model: The trade fee structure ensures protocol sustainability while rewarding liquidity providers.
  • Evolving Ecosystem: Creator revenue sharing and potential future features suggest a platform designed for long-term scalability in the DeFi market.

Regulatory Considerations

  • No explicit mention of regulatory impacts in the text, but as DeFi grows, compliance with blockchain regulations will be critical for PumpSwap’s global expansion.