Pump.fun announced the launch of its native PumpSwap DEX, allowing the market operator to list its own meme tokens. The DEX may also reward token creators with a share of trading fees.
Pump.fun has launched PumpSwap, the long-awaited DEX. The exchange will use the meme token launchpad pools, bypassing Raydium. Until recently, Raydium was the most common Solana DEX for graduating tokens. The DEX was expected to launch soon, but Pump.fun did not give a specific deadline. The interest in the new DEX expressed by other projects shows Pump.fun is not dead, despite the slower activity.
All coins that complete their bonding curve will migrate directly to PumpSwap, and the migration fee will go to zero. Pump.fun extended its mission to create a seamless token trading process. Previously, migrations caused delays of the token trading momentum, and will now also happen seamlessly and instantly.
Introducing PumpSwap, Pump’s new native DEX
beginning NOW all coins that complete their bonding curve will migrate directly to PumpSwap
PumpSwap enables
– instant migrations
– 0 migration fees (down from 6 SOL)
– more liquidity
– creator revenue sharing (coming soon)& more
pic.twitter.com/T9BkmmaVVS
— pump.fun (@pumpdotfun) March 20, 2025
The PumpSwap V1 will use the model of Raydium V4. The DEX will have 0.25% fees, with 0.20 to the liquidity providers and 0.05% to the protocol.
The introduction of an automatic listing DEX will grant Pump.fun a bigger share of the Solana economy. Despite not having a native token, Pump.fun will finally share some of its revenues with token creators. The revenue swap, however, will come in the near future, and PumpSwap will retain most of its revenues, similar to the token launch platform.
Launching a DEX was met with some skepticism, as the crypto community still holds Pump.fun to be a net extractor of liquidity. The platform has earned over 3.18M SOL in fees but has created tokens valued at over $4B. Despite this, most traders in the bonding curve trenches have lost money.
Pump.fun aims to boost graduations, trading volume
The announcement of a Pump.fun DEX arrived just a day after Raydium announced its own LaunchLab meme token platform. The balance of token launches and graduations remains one of the biggest bottlenecks for meme trading.
In the past 24 hours, Pump.fun saw over 5,000 tokens launched, but only 124 graduated to Raydium. A little over 3,000 addresses generated new tokens in the past days, though on slow days, only 1,000 wallets become token creators.
Teams are more challenged to raise the necessary liquidity, and fewer random tokens move on to trade on a DEX. The native PumpSwap may try to repair the number of graduations.
To boost trader interest, PumpSwap will also add tokens from outside the meme ecosystem. Some of the assets have been bridged to Solana and will gain new liquidity pairs. Aptos (APT) is one of the first bridged tokens to be added to PumpSwap. The new DEX has partnered with a long list of projects, which will bring Solana versions of their tokens and will build more liquidity pairs. Most of the tokens come from the Ethereum ecosystem and from L2, which have also seen low volumes.
To boost volumes on the new DEX, PumpSwap has also organized its first trading competition.
TOMORROW, our auditing competition with @cantinaxyz will commence with over $2,000,000 in prizes up for grabs
more information is available here: https://t.co/N5XHWKfB07
— pump.fun (@pumpdotfun) March 20, 2025
The new DEX was launched as Pump.fun had a significant slide in fees. Currently, the platform achieves fees of $1.06M per day, down from a peak of over $13M during the most active times. Pump.fun has lost up to 70% of its fee inflows, and the new DEX may recoup some of the lost income.
TRON will also collaborate with Pump.Fun
TRON DAO also announced it will be among the partners of Pump.fun and PumpSwap. TRON aims to build its own meme token platform, while also spreading to Solana.
#TRON is thrilled to announce its collaboration with @pumpdotfun.
TRON’s involvement in this initiative further strengthens its commitment to cross-chain innovation and the expansion of decentralized finance (DeFi) access. As PumpSwap grows, it aims to become a key liquidity… https://t.co/ypOUj2pT82
— TRON DAO (@trondao) March 20, 2025
The announcement comes just a day after Justin Sun announced a form of wrapped TRX may be coming to Solana. The partnership with the new DEX will further boost the presence of TRON on Solana.
TRON DAO expects PumpSwap to become a key liquidity hub, in case the token season revives. The partnerships and the new DEX arrive at a time when Solana is slowing down, with 93% lower fees.
Following the news, SOL did not outperform but instead slid again to $127.73.
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