In March 2025, PumpFun launched PumpSwap, its native decentralized exchange (DEX), ending its partnership with Raydium and entering direct competition. This move aims to eliminate Raydium’s 6 SOL liquidity pool fee, reduce reliance on third-party platforms, and create a closed-loop ecosystem.
Key differentiators include multi-chain support (Aptos, Tron, etc.), a creator revenue-sharing model (0.05% of fees to token creators), and integration with PandaTool’s trading bots for bulk operations. By cutting costs and empowering creators, PumpSwap could redefine DEX dynamics.
1. PumpSwap vs Raydium: Why PumpFun Built Its Own DEX to Cut Costs
PumpFun, the meme token launchpad, made waves in March 2025 by releasing PumpSwap, its own decentralized exchange. This marked a strategic shift from collaboration to competition with Raydium, its former partner. Historically, tokens launched on PumpFun migrated to Raydium for trading, but PumpSwap now allows tokens to bypass Raydium entirely once they accumulate 85 SOL.
The primary motivation? Cost reduction. Raydium charged 6 SOL to create liquidity pools — a fee absorbed by PumpFun but deemed unsustainable. “Why let Raydium profit without contributing to our ecosystem?” PumpFun argued. PumpSwap eliminates this fee, enabling tokens to launch pools at zero cost.
2. PumpSwap Explained: How PumpFun’s New DEX Challenges Raydium
PumpSwap operates as an Automated Market Maker (AMM) using the constant product formula (x * y = k), akin to Uniswap V2 and Raydium V4. Its contracts are audited by nine independent firms and remain open-source for transparency.
Key features:
- Multi-chain support: Beyond Solana, PumpSwap integrates Aptos (APT), Tron (TRX), Coinbase’s cbBTC, and Ethena’s USDe.
- Creator incentives: 0.05% of transaction fees are shared with token creators, aligning their success with the platform.
- Low fees: A 0.25% transaction fee (0.20% to liquidity providers, 0.05% to the protocol).
3. From Meme Tokens to DEX: PumpSwap’s Multi-Chain Strategy and Fees Breakdown
PumpSwap isn’t just for meme tokens. Its cross-chain compatibility attracts traders seeking exposure to diverse assets. For instance, a Tron-based project can launch on PumpFun and trade on PumpSwap without relying on external DEXs.
Cost comparison:
- Raydium: 6 SOL pool creation fee.
- PumpSwap: $0 fees, with liquidity providers earning 0.20% of trades.
4. PumpSwap’s Creator Revenue Model: A Game-Changer for Token Projects?
The creator revenue-sharing program is PumpSwap’s standout innovation. By rewarding token creators with a slice of transaction fees, PumpFun incentivizes high-quality launches. For example, a token generating 1Mdailyvolumewouldearnitscreator50/day — a powerful tool for community-building.
5. Trading on PumpSwap: How PandaTool’s Bot Simplifies Token Operations
PumpSwap’s integration with PandaTool’s trading bots streamlines market-making. Users can:
- Execute bulk buy/sell orders across multiple wallets.
- Bundle transactions via Jito’s speed-enhancing technology for faster execution.
- Manage token liquidity without coding expertise.
Conclusion: PumpSwap’s Impact on the DEX Landscape
PumpSwap isn’t merely a cost-cutting move — it’s a bid for ecosystem dominance. By combining multi-chain agility, creator incentives, and seamless tooling, PumpFun aims to attract both meme projects and serious builders. As PandaTool’s bots lower entry barriers, PumpSwap could emerge as a formidable player in the DEX arena, challenging Raydium’s market share and redefining how tokens launch and scale.
PandaTool Trading Bot:https://solana.pandatool.org/en/swapbot
