Pump.fun has begun testing an automated market maker (AMM) on its testnet, aiming to improve liquidity management and ensure platform security.
Testing the New AMM Pool
Pump.fun is testing an automated market maker (AMM) on its testnet to replace its current third-party liquidity supplier, Raydium. This initiative aims to simplify the process of meme token migration and retain a larger share of transaction fees on the platform.
Role of Meme Tokens in DEX Activity
Amid the surge in meme token activity on decentralized exchanges, Pump.fun has processed over $500 million in swaps. Approximately 1.4% of tokens launched eventually migrate to Raydium. The platform is committed to fostering organic growth through sustainable meme communities.
Combating Money Laundering on the Platform
Pump.fun also strengthens security measures to prevent illicit transactions. Recently, the platform blocked a hacker attempting to launder stolen funds. The hacker had launched a token named “QinShihuang” on Pump.fun. Despite having already transferred $1.08 million in stolen funds, the hacker's actions were halted.
Pump.fun is actively working to enhance its transparency and security amid the growing role of meme tokens in decentralized systems.
