Pump.fun Unveils PumpSwap to Cut Costs and Up Token Trading

• PumpSwap cuts token migration fees and streamlines the complete trading process.  
• Security and liquidity improvements are the top focus for Pump.fun’s new DEX.      
• Despite revenue declines, PumpSwap remains a strong player on the Solana blockchain.

Pump.fun has launched its native decentralized exchange (DEX), PumpSwap, designed to streamline the token migration processes. This launch coincides with a significant 60% drop in Pump.fun’s monthly revenue. Unlike other platforms like Raydium, PumpSwap enables direct token migration once they finish their bonding curve, eliminating the previous 6 SOL migration fee.

The move marks a shift in the decentralized exchange environment, especially for meme coins, which have gained massive popularity. As PumpSwap joins reputable players like Raydium and Orca, it offers quick transfers and lower fees. The same SOL’s proof-of-stake capability to handle over 65,000 transactions per second through small fees makes it well-suited for meme coin developers.

Lower Costs and New Token Migration Features

Pump.fun’s decision to eliminate the 6 SOL migration fee is a significant development. Now, tokens that finish their bonding curve can be traded directly within PumpSwap’s ecosystem.   This change not only reduces costs but also enhances liquidity by ensuring immediate token trading without the need for Raydium’s involvement.

In addition to reducing migration expenses, PumpSwap charges a 0.25% fee per trade. Of this, 0.05% goes to the protocol, and 0.20% is distributed to service providers. This fee structure helps incentivize liquidity provision while maintaining operational costs.

Furthermore, Pump.fun hinted at a future Creator Income Sharing model, which will adjust the fee distribution to reward token creators. This effort is aimed at aligning incentives between creators and their communities, fostering the development of high-quality projects.  

Related: Meme Coin Boom Slows, Pump.fun Faces Revenue Decline

Security and Future Developments Amid Market Challenges

Security remains a priority for Pump.fun, as evidenced by its nine independent security audits. The team plans to eventually make the PumpSwap program open-source, further enhancing transparency and trust.

Despite an intense drop in revenue—from nearly $4 million per day in January to over $1 million by mid-March—Pump.fun continues to be one of the top protocols on Solana. This decline in earnings mirrors a broader slowdown in meme coin trading activity, spurred by the collapse of the LIBRA token and a general loss of confidence in the market.

Nonetheless, PumpSwap aims to revive the decentralized exchange ecosystem of Solana.  While new competitors like Raydium’s LaunchLab and other platforms such as Pumpkin and GoFundMeme crop up, PumpSwap prances into the foreground in this dynamic market.

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