Pump.fun has officially launched PumpSwap, its native decentralized exchange on the Solana blockchain. A major highlight of the new exchange is the elimination of migration fees, a move that could disrupt the existing DEX market, particularly affecting competitors like Raydium.
PumpSwap aims to retain liquidity from tokens launched via Pump.fun by ensuring a seamless transition from its bonding curve mechanics to the new exchange, eliminating the previous 6 SOL migration fee required to move tokens to Raydium.
The platform is built on Solana’s Constant Product Automated Market Maker model, drawing structural similarities to Uniswap V2 and Raydium V4. The platform enables frictionless liquidity provision while charging a 0.25% swap fee, where 0.20% goes to liquidity providers and 0.05% is allocated to the protocol.
The removal of migration fees is a major development, addressing one of the biggest friction points for token creators looking to transition from Pump.fun’s launchpad to a trading venue. By offering free liquidity pool creation and direct integration, PumpSwap could prevent tokens from migrating to Raydium, retaining liquidity within its own ecosystem.
Introducing PumpSwap, Pump’s new native DEX
beginning NOW all coins that complete their bonding curve will migrate directly to PumpSwap
PumpSwap enables
– instant migrations
– 0 migration fees (down from 6 SOL)
– more liquidity
– creator revenue sharing (coming soon)& more 👇 pic.twitter.com/T9BkmmaVVS
— pump.fun (@pumpdotfun) March 20, 2025
PumpSwap Challenging Raydium
The new platform can be seen as a direct challenge to Raydium, which has long been the dominant liquidity venue for tokens launched via Pump.fun. Reports indicate that only 10% of the platform’s meme tokens previously migrated to Raydium, meaning PumpSwap has the potential to capture and consolidate liquidity that would have otherwise flowed into Raydium’s pools.
This comes amid growing competition in Solana’s DEX sector. In response to PumpSwap’s launch Raydium is developing LaunchLab, a direct competitor to Pump.fun’s token launch model. LaunchLab will feature customizable bonding curves, giving projects more control over price discovery and liquidity distribution.
