pump.fun has announced the launch of PumpSwap, to compete with Solana's ecosystem DEX.

BlockBeats News, March 21st, according to CoinDesk, Pump.fun is vying for a larger share of the Solana on-chain DeFi economy.

This highly popular Meme coin Launchpad platform launched a token exchange service based on a protocol liquidity pool on Thursday. The service, named PumpSwap, enables the project to directly compete with an automated market maker (AMM) that specifically provides on-chain token trading in the Solana ecosystem.

Previously, those Meme coins with higher trading volume would typically "graduate" to Raydium, the long-standing core platform for Solana DeFi liquidity pools. However, now Pump.fun will directly provide launch liquidity for promising tokens on PumpSwap. This fully proprietary model will lower the project's launch costs, revealed its founder, and will change Pump.fun's previous highly lucrative revenue model.

According to the project's launch document, Pump.fun's founders believe that PumpSwap could become a core of all tokens' permissionless trading infrastructure on Solana. They have entered into agreements with multiple token projects that will directly establish liquidity within PumpSwap's framework.

At the same time, the token creators may ultimately benefit. PumpSwap will enable a revenue-sharing mechanism in the future, allowing creators to receive a portion of the 25 basis points fee collected by the protocol in transactions, said Pump.fun's founder. However, they did not disclose how much creators will receive in revenue sharing, nor did they specify when this mechanism will take effect.