Pump.fun Launches PumpSwap: A New Decentralized Exchange

Pump.fun, a memecoin launchpad on Solana, has unveiled PumpSwap, a native decentralized exchange that promises instant token migration, zero fees, and enhanced liquidity.

On March 20, 2025, the Pump.fun team announced the launch of PumpSwap on platform X, stating that the exchange will support all launchpad coins that have completed their bonding curve.

Built on Solana (SOL), PumpSwap operates similarly to Raydium v4 and Uniswap v2, utilizing a constant product automated market maker model. This allows users to create and add to liquidity pools as well as trade all tokens listed on PumpSwap.

> “Why did we build this? From day 1, our goal was to create the most frictionless environment for trading coins. Migrations were a major point of friction – they slow a coin’s momentum and introduce needless complexity for new users,” said Pump.fun on X.

The exchange introduces instant migrations, removing the previous fee of six SOL and enhancing usability for new traders. Initially, PumpSwap plans to charge a 0.25% fee per trade, with 0.20% distributed to liquidity providers and 0.05% to the protocol, making adjustments after revenue sharing for creators goes live.

In addition to memecoins, PumpSwap will support tokens from partner platforms including Pudgy Penguins, Aptos, Tron, Jupiter, Sei, and LayerZero. It will also feature Coinbase’s wrapped token cbBTC, Ethena Labs’ stablecoin USDe, and Frax Finance’s frxUSD and FXS.

TRON DAO commented on X:
> “TRON’s involvement in this initiative further strengthens its commitment to cross-chain innovation and the expansion of decentralized finance access. As PumpSwap grows, it aims to become a key liquidity hub, supporting on and off-ramps across multiple blockchains and driving broader adoption of Web3 technologies.”

The launch of PumpSwap occurs shortly after Raydium (RAY) launched its own memecoin factory, LaunchLab, offering similar token creation and launching features.