The rapidly evolving Solana ecosystem has witnessed a major shift with the official debut of PumpSwap, the native decentralized exchange (DEX) from Pump.fun—the wildly popular token launchpad known for powering countless meme coin launches. This strategic move positions Pump.fun not just as a launchpad, but as a full-fledged trading platform, reshaping how meme coins transition from creation to open market trading.
With PumpSwap now live, all tokens that complete their bonding curve on Pump.fun will migrate directly to the new exchange—bypassing third-party platforms like Raydium entirely. The upgrade promises instant migrations, zero fees, increased liquidity, and an upcoming creator revenue sharing model, marking a pivotal moment in decentralized finance (DeFi) on Solana.
👉 Discover how decentralized exchanges are redefining token launches and user access.
Seamless Migrations and Zero-Cost Transitions
Previously, when a token created on Pump.fun hit a $100,000 market cap, it began migrating to Raydium for broader trading. While intended to provide liquidity, this process was often slow—sometimes taking hours—and came with a steep 6 SOL fee (worth hundreds of dollars at current rates). These delays disrupted momentum and created friction for both creators and new investors.
Now, PumpSwap eliminates these bottlenecks entirely.
“Migrations were a major point of friction—they slow a coin's momentum and introduce needless complexity for new users,” Pump.fun stated in its official announcement. “Now, migrations happen instantly and for free.”
This instant migration feature ensures that newly launched tokens maintain their viral energy without interruption. By removing the 6 SOL migration cost, Pump.fun also lowers the barrier to entry for retail traders and small creators, aligning more closely with Web3’s ethos of decentralization and accessibility.
Enhanced Liquidity and Future Revenue Sharing
Beyond speed and cost savings, PumpSwap introduces structural improvements designed to benefit both traders and creators:
- Increased liquidity pools for migrated tokens
- Native integration with the Pump.fun ecosystem
- Roadmap for creator revenue sharing—a first in the meme coin space
While details remain limited, Pump.fun has confirmed that a percentage of protocol revenue generated on PumpSwap will soon be distributed back to coin creators. This model could set a new standard for incentivizing innovation in decentralized communities.
A source familiar with the development indicated that the revenue-sharing mechanism is expected to roll out within weeks, not months—a timeline that suggests strong momentum behind the initiative.
This shift also addresses long-standing criticism about Pump.fun’s massive revenue generation. According to Dune Analytics data, the platform has earned an estimated $600 million since its launch in January 2024, primarily through migration fees. With those fees now eliminated and revenue potentially being shared with creators, Pump.fun is repositioning itself as a more equitable player in the ecosystem.
Competitive Landscape: Pump.fun vs. Raydium
The launch of PumpSwap marks a clear divergence from Raydium, which had previously served as the default destination for mature Pump.fun tokens. The relationship between the two platforms appeared strained even before the official announcement: rumors in early 2025 about Pump.fun building its own AMM caused Raydium’s RAY token to drop sharply.
Following the PumpSwap launch, RAY plunged another 7.6% within five minutes, settling nearly 9% lower on the day at $1.65, according to DEX Screener data.
In response, Raydium has signaled its intent to fight back by launching its own token launchpad—a direct challenge to Pump.fun’s dominance in early-stage meme coin creation.
Despite the growing rivalry, Pump.fun co-founder Alon Cohen emphasized a competitive yet constructive outlook:
“We welcome competition, because users win at the end of the day.”
Cohen also extended an invitation to other launchpads:
“It's the launchpad's choice whether they want their coins to migrate to PumpSwap, and we're more than happy to partner with launchpads looking to tap into Pump's diverse user base.”
Available Tokens and Trading Access
At launch, PumpSwap supports trading for several high-profile assets, including:
- PENGU (Pudgy Penguins’ meme coin)
- USDC (Circle’s stablecoin)
- JUP (Jupiter Exchange’s native token)
- All newly migrated Pump.fun tokens
However, only tokens created on Pump.fun or from "listed partners" are automatically tradable. Other projects must establish their own liquidity pools to go live on the exchange—a common practice in decentralized environments that helps prevent spam and low-quality listings.
Security Measures and Community Audits
Security remains a top priority for Pump.fun, especially after a high-profile incident in 2024 involving a disgruntled former employee who exploited internal access to drain approximately $2 million from the protocol. The attacker, Jarett Dunn (aka Stacc), later pleaded guilty in the UK but is seeking to withdraw his plea.
To rebuild trust and ensure robustness, Pump.fun has taken proactive steps:
- Passed nine independent security audits
- Launched a $2 million audit competition hosted on Cantina.xyz to incentivize white-hat hackers
These initiatives reflect a growing trend in DeFi: leveraging community-driven security models to identify vulnerabilities before malicious actors can exploit them.
👉 Learn how secure decentralized platforms are shaping the future of digital asset trading.
Frequently Asked Questions (FAQ)
Q: What is PumpSwap?
A: PumpSwap is the native decentralized exchange (DEX) launched by Pump.fun. It enables instant, fee-free migration of meme coins from the launchpad to a live trading environment on Solana.
Q: Do I need to pay to migrate my token now?
A: No. Migration fees have been completely eliminated—down from the previous 6 SOL charge.
Q: When will creators start earning revenue from PumpSwap?
A: A creator revenue sharing model is confirmed to launch in the coming weeks, though exact dates have not been announced.
Q: Can any token be listed on PumpSwap?
A: Only tokens created on Pump.fun or from approved partner projects are automatically listed. Others must create their own liquidity pool.
Q: How does PumpSwap affect Raydium?
A: PumpSwap directly competes with Raydium by offering faster, cheaper migrations. This has led to short-term price drops in Raydium’s RAY token and plans for Raydium to launch its own competing launchpad.
Q: Is PumpSwap safe to use?
A: The platform has undergone nine security audits and launched a $2 million bug bounty program, indicating strong commitment to security post-incident.
As the lines blur between launchpads and exchanges, Pump.fun is betting big on vertical integration—controlling every stage of a meme coin’s lifecycle. With instant migrations, zero fees, and plans for creator monetization, PumpSwap isn’t just an upgrade—it’s a reimagining of how decentralized communities grow and thrive.
👉 See how next-generation DeFi platforms are transforming digital ownership and trading.