Pump.Fun Plans Launch of Own Automated Market Maker, Impacting Raydium’s RAY
Solana-based token issuance platform Pump.Fun is reportedly preparing to launch its own automated market maker (AMM) system, although no official announcement has been made.
Key facts include:
- AMM operates using a liquidity pool of at least two tokens, with prices set by smart contracts based on supply and demand.
- The upcoming "amm.pump.fun" will feature swap options, deposits, and withdrawals.
- Pump.Fun allows users to issue tokens for under $2, determining the number of tokens and associated themes.
- When a token's market capitalization hits $69,000, part of the liquidity is deposited into the Solana exchange Raydium and burned.
- The potential AMM suggests that tokens may not migrate to Raydium, negatively impacting RAY tokens, which have dropped 25% in the last 24 hours.
- Trader @trenchdiver101 indicated that Pump.Fun tokens might transition to their own pools, potentially increasing fees or rewards for holders.
- Raydium maintains average daily trading volumes of approximately $500 million, supported by various markets beyond Pump.Fun tokens.
- Pump.Fun has generated over $550 million in total fees since March 2024, with $2.4 billion in trading volume in the past two weeks.
- Over 8 million tokens have been issued since its launch in 2024, with some, like fartcoin (FART), achieving significant market capitalizations.