tl;dr
Token launchpad Pump.fun has launched PumpSwap, a decentralized exchange (DEX) on Solana, as its monthly revenue decreased by nearly 60%. PumpSwap will launch tokens after completing their bonding curve, removing the previous 6 SOL migration fee. The DEX operates as an automated market maker (AMM), ...
Token launchpad Pump.fun has launched PumpSwap, a decentralized exchange (DEX) on Solana, as its monthly revenue decreased by nearly 60%. PumpSwap will launch tokens after completing their bonding curve, removing the previous 6 SOL migration fee. The DEX operates as an automated market maker (AMM), with a 0.25% trade fee and plans for a Creator Revenue Sharing model. Security is a priority, with nine independent audits conducted. The revenue decrease is attributed to the cooling off of the memecoin craze, with Pump.fun working to compensate for the loss.
Token launchpad Pump.fun has announced PumpSwap, a native decentralized exchange (DEX) built on Solana. The launch comes amid a nearly 60% monthly revenue decrease. The new DEX will launch tokens after completing their bonding curve instead of creating a liquidity pool on Raydium. As a result, the new migration system removes the previous 6 SOL migration fee.
PumpSwap V1 is an automated market maker (AMM) similar to Raydium V4 and Uniswap V2. It facilitates trading by using a constant product formula. Users can create liquidity pools at no cost, contribute to existing pools, and trade all tokens listed on the platform. PumpSwap also incorporates a fee structure similar to other decentralized exchanges. Each trade incurs a 0.25% fee, with 0.20% allocated to liquidity providers and 0.05% to the protocol. The announcement also cited a forthcoming Creator Revenue Sharing model, which will adjust the fee distribution and allocate a portion of protocol revenue to token creators.
The memecoin craze cooled off in February following the LIBRA memecoin fiasco. On Feb. 14, Argentine President Javier Milei endorsed the token by saying it would fund small ventures in the country. The token soared right after and reached a $4.5 billion market cap before collapsing 95% in the two following days. The scandal raised questions about heavy insider trading activity in the memecoin sector, which has contributed significantly in driving away investors, who were already spooked by market sentiment. The monthly trading volume associated with memecoins plunged from nearly $206 billion in January to $99.5 billion in February. This movement is reflected in Pump.fun’s revenue stream.