Pump.fun has launched PumpSwap, its native decentralized exchange on Solana. This DEX eliminates migration fees for tokens completing their bonding curves.
This development marks a strategic shift in Solana’s DEX landscape, potentially drawing liquidity away from established platforms like Raydium while offering token creators and traders improved economic incentives. The platform has completed 9 audits from Pashov Audit Group, OtterSec, Sec3, and bl0ckpain.
PumpSwap Enters the Solana DEX Arena
On March 19, 2025, Pump.fun announced its new native DEX platform, PumpSwap. Tokens that complete their bonding curves will automatically migrate here. The platform operates as a decentralized exchange built on Solana.
It will function through a Constant Product Automated Market Maker (AMM) model similar to Raydium V4 and Uniswap V2. This architecture allows users to trade tokens with automated price discovery based on the ratio of assets in liquidity pools.
PumpSwap arrives at a time when Pump.fun has established itself as a major player in the Solana ecosystem. The platform has generated considerable revenue, with reports indicating that over $500 million has been generated in swap fees.
This financial success has enabled Pump.fun to expand its service offerings beyond token launching into providing a full trading infrastructure. Each trade on PumpSwap incurs a 0.25% fee, which goes to liquidity providers (0.20%) and the protocol (0.05%).
A notable feature of PumpSwap is the elimination of migration fees. Previously, token projects paid 6 SOL to migrate from Pump.fun to other exchanges like Raydium. This fee has been reduced to zero, removing a major barrier for new token projects. The DEX also offers free liquidity pool creation and trading access to all PumpSwap-listed tokens. These features address major challenges in the token migration process.
Impact on Solana’s DEX Ecosystem
This launch may reshape competitive dynamics within Solana’s DEX landscape. Presently, only approximately 10% of tokens launched on Pump.fun have chosen to migrate to Raydium. By removing migration fees and direct integration, PumpSwap could retain more of this token liquidity within its ecosystem. This could negatively impact Raydium’s trading volume.
PumpSwap is already hosting trading pairs like cbBTC/SOL and transaction volume and liquidity metrics show active platform usage.
Other projects like Axiome Chain are also implementing token issuance features inspired by Pump.fun’s model. This reflects a growing influence on token launches and trading.
With Pump.fun’s established user base and removal of economic barriers to migration, PumpSwap appears positioned to capture a larger share of the Solana DEX market as newer tokens opt for its zero-fee migration path and integrated trading environment.
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