What is PumpSwap?
Introduction
PumpSwap is the decentralized exchange (DEX) launched by Pump.fun, a Solana-based memecoin launchpad, in late March. As Pump.fun’s native DEX, PumpSwap provides a “frictionless environment” for trading the platform’s tokens, directly integrating with Pump.fun’s token launch. It officially went live on March, immediately routing new memecoins to trade on PumpSwap instead of external exchange.
Related: What is Pump.fun?
Despite a broader decline in memecoin prices and Pump.fun’s monthly revenue dropping 60% due to market conditions and scandals like the LIBRA token collapse, PumpSwap’s volume has been growing consistently since its launch, hitting over $650M daily volume.
Source: https://defillama.com/dexs/pumpswap
Core Features
PumpSwap’s design introduces several key features and innovations that distinguish it from the prior setup and other DEXs. The sections below outline its core functionality and benefits, including the automated market maker model, instant token migration, and creator revenue sharing.
Automated Market Maker (AMM) Model
PumpSwap operates on an automated market maker model similar to Uniswap V2 and Raydium v4. In practice, this means it uses a constant-product formula (x * y = k) to facilitate swaps via liquidity pools instead of order books. Each trade on PumpSwap incurs a modest 0.25% fee, which is split between liquidity providers (0.20%) and the protocol (0.05%).
This AMM structure enables permissionless token trading with fast, low-cost transactions on Solana’s high-speed network. By adopting a battle-tested AMM design, PumpSwap aims to offer comparable functionality to established DEXs while tailoring it to Pump.fun’s memecoin-centric community.
Instant Token Migration and Liquidity
One of PumpSwap’s flagship features is the elimination of the token migration process that previously existed on Pump.fun.
Under the old model, when a new token finished its initial liquidity bootstrap (the bonding curve phase) on Pump.fun, it had to migrate to an external exchange (formerly Raydium) to enable open trading – a process that incurred a hefty 6 SOL fee and could slow down momentum. PumpSwap removes this hurdle entirely.
Tokens launched on Pump.fun are now immediately listed and tradable on the in-house DEX as soon as they complete their bonding curve, with no separate pool creation or migration fee required. This instant migration means liquidity remains intact on PumpSwap; even the SOL that was bonded for initial token sales no longer gets pulled out, but instead stays to support the new pool.
By cutting out the delay and cost of moving to an external AMM, PumpSwap greatly streamlines the user experience. New memecoins can maintain their launch momentum, and creators save money and time. Pump.fun emphasized that migrations were a major point of friction – now, they happen “instantly and for free.”
Revenue Sharing Model for Creators
Another novel aspect of PumpSwap is its plan to share exchange revenue with token creators. Pump.fun announced that a portion of the protocol fees earned on PumpSwap trades will soon be distributed to the creators of those tokens.
This concept, inspired by a competing Solana project’s approach, aligns the incentives of coin creators with the platform’s success. Under the upcoming revenue-sharing model, whenever a token is traded, a cut of the fees (the 0.05% protocol fee from the AMM, for example) could be funneled back to that token’s creator as ongoing income. Pump.fun’s team stated that if this succeeds, “millions of dollars will go towards aligning creators with their communities” by rewarding higher-quality launches.
PUMP Token Speculation
There is currently no definitive confirmation that PumpSwap will launch its own token. While speculation surrounds a possible "PUMP" token tied to Pump.fun, PumpSwap’s parent platform, no specific evidence shows there will be a token launch in foreseeable future.
Pump.fun co-founder Alon Cohen stated in April 2025 that the team does not plan to launch any tokens, instead focusing on social-tokenization experiments. This followed similar denials earlier in the year, despite previous public hints in 2024 about token-related plans.
Conclusion
By integrating an AMM directly into the Pump.fun launchpad, PumpSwap has reduced friction for new token launches (instant, fee-free migration) and opened new avenues for creator incentives. In just weeks since its debut, it has scaled to billions in trading volume and hundreds of thousands of users, rapidly becoming one of the top DEXs on Solana. Looking forward, features like the forthcoming revenue-sharing model aim to foster a more sustainable platform.
