Pump.fun Plans to Launch Own AMM, Moving Away from Raydium
Pump.fun, a Solana memecoin launchpad, is reportedly developing its own automated market maker (AMM), posing a potential threat to Raydium's revenue. Key points include:
- Pump.fun has been migrating tokens to Raydium, generating 36% of its $154 million swap revenue in 2024.
- A new URL for pump.fun’s AMM has been spotted, prompting concerns over future liquidity and revenue for Raydium.
- Pump.fun considered alternatives like Ellipsis Labs’ Plasma AMM but declined the offer.
- The introduction of an in-house AMM could enhance pump.fun's profitability, especially with plans to launch a token.
- Raydium contributors warn that this move may be a strategic error, as it relies on Raydium's liquidity.
- The nature of pump.fun’s AMM remains uncertain due to its closed-source status.