The scenario of memecoins on Solana gained a new chapter with the launch of PumpSwap
The scenario of memecoins on Solana gained a new chapter with the launch of PumpSwap, a decentralized exchange (DEX) native to Pump.fun, which promises to speed up token listing and impact trading dynamics, eliminating migration fees and opening doors to new revenue sharing models.
“Introducing PumpSwap, Pump’s new native DEX starting NOW all coins that complete their bonding curve will migrate directly to PumpSwap. PumpSwap enables – instant migrations,” announced. “PumpSwap V1 is a decentralized exchange built on Solana. It functions similarly to Raydium V4 and Uniswap V2 through its Constant Product AMM.”
With the launch of the PumpSwap platform, newly minted tokens on Pump.fun will be automatically listed on the DEX, eliminating the need for migration to other platforms such as Raydium. This will not only make the listing process faster, but it will also eliminate the 6 SOL migration fee, a cost previously borne by token creators.
In justifying the creation of the DEX, the developers explained that the goal was to “create the most frictionless environment for trading coins,” and in this sense, migrations were a major sticking point for the project. “They slow down a coin’s momentum and introduce unnecessary complexity for new users. Now, migrations happen instantly and for free.”
Additionally, PumpSwap highlighted in its announcement the possibility of implementing a revenue sharing model among creators soon. “We are also investing in creating a more sustainable ecosystem soon, a percentage of the protocol’s revenue will be shared with coin creators if successful, millions of dollars will go towards aligning creators with their communities and incentivizing higher quality launches.”
“Every trade on PumpSwap comes with a 0.25% fee, aligning with similar products to begin with, here is how fees will be distributed: – 0.20% for liquidity providers – 0.05% for the protocol Once Creator Revenue Sharing is live, the fee distribution will change.”
The launch of PumpSwap represents a major milestone for Pump.fun and the memecoin marketplace on Solana.