Solana exchange and automated market maker Raydium are reported to be forking away from Pump.Fun, developing a new platform called LaunchLab, Pump.Fun is developing its own automated market maker (AMM), preparing to part ways with Raydium and severing their informal cooperation. Raydium is also preparing to part ways, maintaining a friendly relationship with Pump.Fun and gradually forking out a new platform.
The meme coin Pump.Fun with a market cap of $69,000 deposited in Raydium's trading pool has been destroyed. Data from Blockworks Research shows that over the past 30 days, Pump.Fun's meme coins accounted for 41% of Raydium's swap fee revenue. Investors estimate that Pump.Fun is starting to transfer tokens to its internal market maker, causing a significant drop in Raydium's revenue, and Raydium's native token has plummeted 25% in February.
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ToggleRaydium Forks Out Pump.Fun, Develops Its Own Platform
Raydium's balance sheet shows it holds about $168 million. The advantage of having a large amount of capital is that it can quickly build a fork similar to Pump.Fun. Raydium's core contributor Infra revealed that they had planned to develop LaunchLab earlier, but had put the project on hold because they didn't want the team to feel that Raydium would directly compete with Pump.Fun. Raydium believes that Pump.Fun's product and market fit is thanks to Raydium's infrastructure. Although they believe Raydium's liquidity pool may attract users, Infra does not see LaunchLab as a killer for Pump.Fun.
Infra stated that LaunchLab is not intended to replace Pump.Fun or any other platform, but rather to provide an alternative for teams that don't want to develop their own programs and Pump users who want to migrate their pools to Raydium's AMM v4.
How LaunchLab Works
LaunchLab will provide a combination of linear, exponential and logarithmic Bonding Curves that match token demand and price, allowing third parties to set their own fees. In addition to providing Bonding Curves and flexible fee rates, LaunchLab will also support various quote tokens other than SOL, and provide vault integration for Raydium's liquidity providers, allowing meme coin issuers to permanently secure their swap fee revenue. Infra said LaunchLab is the primary foundational component of Raydium's comprehensive toolkit for creating meme coins.
Risk Warning
Cryptocurrency investments are highly risky, their prices may fluctuate dramatically, and you may lose your entire principal. Please carefully evaluate the risks.
