Pump.fun releases its DEX, displacing Raydium
Pump. fun has unveiled its own decentralized exchange (DEX) called PumpSwap, potentially pushing #Raydium away from its position as Solana's main trading platform for memcoins.
Starting March 20, memcoins that have successfully raised liquidity, or "custody, on Pump. fun will begin trading directly on PumpSwap, Pump. fun said in a statement.
Earlier, Pump. fun tokens that went through the bonding process migrated to Raydium, which has become Solana's most sought-after DEX, thanks in large part to its memcoin trading activity.
According to Pump. fun, PumpSwap "functions similarly to Raydium V4 and Uniswap V2" and aims to "create the most frictionless coin trading environment possible".
"[M]igrations have been a significant obstacle, slowing the coin's momentum and creating unnecessary difficulties for new users, Pump. fun notes.
"[Now migrations are instant and free.
The launch comes just days after Raydium announced plans to launch its own memcoin startup platform, LaunchLab, to directly compete with Pump. fun.
Pump. fun and Raydium's transformation from partners to competitors foreshadows changes in Solana's decentralized finance (DeFi) ecosystem, at a time when memcoin trading volumes are down significantly from their January peaks.
We welcome competition because in the end it's the users who #win , Alon, one of Pump. fun's co-founders, told Cointelegraph in a March 20 interview.
Other protocols such as Daos. fun, GoFundMeme and Pumpkin are also looking to take their share of the #Solana memcoin market.
PumpSwap intends to implement one of the most popular features of rival GoFundMeme - revenue sharing with memcoin creators.
In the near future, a percentage of the protocol's profits will be shared with coin creators, Pump. fun said.
Read us at: Compass Investments
