Raydium, Solana's largest DEX, is set to launch LaunchLab, a memecoin launchpad. This move comes as a response to the rival Pump.fun's development of its own AMM.
Reasons for LaunchLab
Raydium's relationship with Pump.fun is beneficial yet fragile. As Pump.fun develops, Raydium aims to offer an alternative for project development and revenue retention through LaunchLab. With customizable bonding curves, flexible fee structures, and extended token support, Raydium seeks to retain liquidity providers.
Pump.fun's AMM Move and Its Impact
The introduction of Pump.fun's AMM could divert part of Raydium's earnings. Following rumors of Pump.fun's new plans, Raydium's token (RAY) plunged 25% in February. Yet, Raydium remains financially robust with a $168 million balance. Raydium's core contributor, Infra, indicated their platform had been in development, delayed to avoid direct conflict with Pump.fun.
How LaunchLab Differs from Pump.fun
While similar to Pump.fun, LaunchLab offers more flexibility. Unlike Pump.fun, LaunchLab allows fees set by third parties, supports multiple quote tokens, and safeguards liquidity with Raydium LP Locker integration. Infra emphasizes that LaunchLab isn't intended to replace Pump.fun but offers an alternative for teams preferring Raydium's AMM infrastructure.
LaunchLab's introduction may shift the memecoin sector balance on Solana. The success of Pump.fun or LaunchLab will decide the dominant platform, or both could coexist, providing different approaches for token launches and liquidity management.
