Catenaa, Monday, March 31, 2025- Solana-based token launchpad Pump.fun has introduced PumpSwap, a decentralized exchange (DEX) aimed at reducing trading friction, as the platform grapples with a sharp revenue decline.
PumpSwap will allow tokens to launch automatically after completing their bonding curve, eliminating the need for a 6 SOL migration fee. The move comes as Pump.fun’s revenue dropped nearly 60% in the past month, mirroring a decline in memecoin trading activity.
The new DEX, built as an automated market maker (AMM), enables users to create and contribute to liquidity pools at no cost. PumpSwap’s fee structure includes a 0.25% transaction fee, with 0.20% allocated to liquidity providers and 0.05% directed to the protocol.
Pump.fun also announced a Creator Revenue Sharing model, designed to distribute a portion of protocol revenue to token creators. The initiative aims to encourage higher-quality projects and strengthen community engagement.
Security remains a focus for PumpSwap, which has undergone nine independent audits. The company also plans to open-source its protocol for added transparency.
Pump.fun’s financial challenges stem from a broader downturn in memecoin trading. Monthly volumes have plummeted from $206 billion in January to $99.5 billion in February, exacerbated by concerns over insider trading following the collapse of the LIBRA memecoin.
Despite the revenue drop, Pump.fun remains the seventh-largest protocol on Solana, positioning PumpSwap as a potential avenue for recovery.
