PumpFun has unveiled its new Solana-based decentralized exchange, PumpSwap, aimed at enhancing liquidity and streamlining token migrations.
What is PumpSwap?
PumpSwap is a decentralized exchange facilitating the trade of meme coins and other Solana-based assets. It operates using an AMM model similar to Raydium V4 and Uniswap V2, with a 0.25% trading fee. PumpFun is exploring a new revenue-sharing model that could improve the quality of new projects. At launch, PumpSwap supports several notable tokens, such as USDe and PENGU, and has undergone nine independent security audits, with plans to open-source its code.
Why Choose PumpSwap
Prior to PumpSwap, tokens launched on PumpFun had to migrate to Raydium for trading, creating friction. With PumpSwap, migration is reportedly instantaneous and free, potentially affecting Raydium's dominance in Solana's meme coin market.
Can PumpSwap Revive the Memecoin Market?
The memecoin market is facing challenges, and PumpFun has experienced revenue declines. The launch of PumpSwap is seen as a strategic move to sustain growth by offering new revenue-sharing possibilities and retaining liquidity within its ecosystem.
PumpSwap is positioned as a key tool for PumpFun's long-term development and the potential revival of the memecoin market on Solana's platform.
