Meme coin platform Pumpfun launches PumpSwap, promising creator revenue sharing

• Pump.fun announces the launch of PumpSwap, its native DEX, using a constant product automated market maker.
• PumpSwap will allow free token migrations and promise to enable creator revenue sharing.
• The launch follows a recent announcement of Solana DEX Raydium launching LaunchLab, a Pumpfun competition.

Solana meme coin generator Pumpfun announced on Thursday the launch of its own native decentralized exchange (DEX), PumpSwap, to facilitate the trading of meme coins and other SOL-based crypto tokens. PumpSwap launch comes after Raydium announced it will be launching LaunchLab, a token generator similar to Pumpfun.

Pumpfun rolls out PumpSwap DEX

PumpSwap will use the constant product Automated Market Maker — similar to Uniswap V2 and Raydium V4 — to enable users to provide liquidity and trade meme coins and other Solana-based assets. Pumpfun claims that PumpSwap has already enabled support for several tokens, including USDe, PENGU, SEI, Jupiter (JUP), and Wormhole (W).

Trading on PumpSwap will cost a 0.25% fee per trade, with 0.20% going to liquidity providers and 0.05% to its protocol. However, Pumpfun claims it will change its fee distribution structure to enable revenue sharing with creators.

"Coming soon, a percentage of protocol revenue will be shared with coin creators. If it succeeds, millions of dollars will go towards aligning creators with their communities and incentivizing higher quality launches," wrote Pumpfun.

With PumpSwap, Pumpfun will allow free automatic migration of tokens that complete their bonding curve.

"Migrations were a major point of friction - they slow a coin's momentum and introduce needless complexity for new users," wrote Pumpfun.

Prior to PumpSwap's launch, Raydium was the primary migration platform for trading tokens on Pumpfun that completed their bonding curve. However, with the PumpSwap launch, a huge trading volume could potentially leave Raydium.

The announcement of PumpSwap comes a few days after Raydium announced it will roll out LaunchLab, a token generator similar to Pumpfun.