Pump.fun Debuts PumpSwap DEX with 0.25% Fee Structure and Zero SOL Migration Fee to Reclaim Solana’s Memecoin Market

Pump.fun has launched its native decentralized exchange, PumpSwap, which eliminates the previous 6 SOL migration fee and introduces an efficient, frictionless trading environment on Solana. This strategic move comes amid a 60% monthly revenue decline on Pump.fun and intensifying competition with platforms like Raydium and emerging rivals.

• PumpSwap enables instantaneous, fee-free migrations, eliminating the previous 6 SOL charge and reducing complexity for new users.

• With a trade fee of 0.25% (0.20% to liquidity providers and 0.05% to the protocol), PumpSwap offers a cost-effective trading platform.

• The platform allows users to create and contribute to liquidity pools at no cost, promising a frictionless trading experience.

• PumpSwap’s launch comes at a critical time of declining memecoin volumes and intense competition, positioning Pump.fun to potentially reshape Solana’s DeFi ecosystem.

Pump.fun, a prominent token launchpad responsible for approximately 70% of Solana’s token launches, has officially unveiled PumpSwap, its proprietary decentralized exchange (DEX). Designed to rival Raydium, PumpSwap promises to streamline token migration by moving coins directly to its platform once they complete their bonding curve, effectively removing the cumbersome and costly migration process previously experienced when tokens transitioned to Raydium.

Source: X

Since its launch in early 2024, Pump.fun has helped create over 8.7 million tokens in the Solana ecosystem, earning the platform a revenue of nearly 3.2 million SOL to date. 

Pump.fun’s revenues since launch | Source: Dune Analytics 

Key Features of PumpSwap DEX

PumpSwap is built on an automated market maker (AMM) model similar to Raydium V4 and Uniswap V2. Notable features include:

• Instant and Fee-Free Migrations: Tokens are migrated as soon as they complete their bonding curves without incurring the former 6 SOL fee, allowing for uninterrupted momentum and a smoother user experience.

• Efficient Fee Distribution: Each trade on PumpSwap carries a 0.25% fee, where 0.20% benefits liquidity providers and 0.05% supports the protocol. This model is set to evolve with the introduction of a creator revenue sharing system, which will eventually direct a portion of protocol revenue to token creators.

• Enhanced Liquidity and User Accessibility: By enabling users to create or contribute to liquidity pools at no cost, PumpSwap is positioned to enhance liquidity for newly launched tokens and reduce entry barriers for new participants.

Read more: Top Decentralized Exchanges (DEXs) in the Solana Ecosystem

The timing of PumpSwap’s launch is critical, as it coincides with a notable downturn in memecoin trading volumes. Since January, Pump.fun’s average daily fee revenue has dropped from over $4 million to around $1 million, reflecting broader market sentiment following several memecoin-related scandals, such as the LIBRA incident. Meanwhile, competitors such as Raydium are ramping up their offerings—Raydium recently hinted at launching its own memecoin launchpad, LaunchLab, to directly counter Pump.fun’s innovative approach.

Raydium’s TVL | Source: DefiLlama

This shift in strategy marks a transition from a longstanding partnership between Pump.fun and Raydium to a competitive rivalry. PumpSwap not only offers a more streamlined migration process but also positions itself as a potential catalyst for revitalizing Solana’s memecoin ecosystem by fostering a more accessible and rewarding environment.

Read more: How to Use the Raydium (RAY) Decentralized Exchange on Solana: A Beginner’s Guide

Security remains a top priority for Pump.fun. PumpSwap has already passed nine independent audits by reputable security firms, and the team plans to open-source its code to further enhance transparency. Additionally, the upcoming revenue sharing model—expected to be implemented in the coming weeks—aims to align the interests of token creators and their communities, potentially fueling higher-quality project launches and stronger community engagement.

PumpSwap's debut signifies a strategic pivot for Pump.fun as it seeks to reclaim market share and restore momentum in the competitive Solana memecoin landscape. The platform’s focus on reducing friction, enhancing liquidity, and rewarding innovation is set to drive renewed interest and activity within the ecosystem.

Read more: Top Meme Pump Platforms to Launch and Trade Memecoins in 2025