PUMPSWAP: The new decentralized trading force in the Pump.fun ecosystem

PUMPSWAP is a decentralized exchange (DEX) token launched by Pumpfun eco on March 21, 2025, running on the Solana blockchain. As an important step for Pump.fun towards its autonomous trading eco, PUMPSWAP not only continues the community craze of meme coins but also provides users with a more efficient and cost-effective trading experience through self-built liquidity pools and intelligent trading mechanisms.

This article will comprehensively analyze the origin, function, participation method, and market potential of PUMPSWAP, taking you deep into this emerging token.

What is PUMPSWAP?

PUMPSWAP is a decentralized exchange token developed by the Pump.fun team, with the official token address GMk6j2defJhS7F194toqmJNFNhAkbDXhYJo5oR3Rpump. Pump.fun was originally a meme coin issuance platform where users could create and trade various creative tokens through its internal mechanism, such as ‘DogWifHat’ or ‘PepePump’.

However, early Pump tokens, after reaching a certain trading volume, need to be migrated to external DEX such as Raydium, leading to liquidity dispersion and high trading costs. The launch of PUMPSWAP is to solve this pain point by establishing its own trading platform, concentrating the token trading of the Pump eco internally.

The launch date is set for March 21, 2025, followed by the initial deployment in early April. As of April 8, 2025, PUMPSWAP has officially launched, and the latest update (version 5.2.1) of the Phantom wallet explicitly supports its token display. Solana browser Solscan also recorded the first batch of transaction data.

The core features of PUMPSWAP

1. Deep integration with the Pump.fun eco
   PUMPSWAP is closely connected to the Pump.fun eco. After the newly issued meme tokens accumulate initial trading volume within Pump.fun’s internal exchange (typically 5-10 million transactions), they will automatically migrate to PUMPSWAP’s liquidity pool. For example, when a token named ‘CatPump’ reaches 10 million transactions, its trading pair (SOL/CatPump) will be listed directly on PUMPSWAP. This mechanism ensures a seamless transition for Pump.fun users while bringing stable trading volume to PUMPSWAP.

2. Intelligent Trading Mechanism
   PUMPSWAP adopts the internal trading logic of Pump.fun, using a dynamic pricing model based on the quantity of purchases, rather than a traditional depth order book. For example, if the current exchange rate is 1 SOL for 1000 PUMPSWAP, and 10 SOL is bought at once, the price may rise to 1 SOL = 900 PUMPSWAP due to changes in supply and demand. To reduce slippage losses, the community recommends setting the slippage in the wallet to 10%-15%.

3. Self-built Liquidity Pool
   The biggest highlight of PUMPSWAP is its independent liquidity pool. Users can participate in liquidity mining by providing SOL and PUMPSWAP token pairs (such as SOL/PUMPSWAP) to earn a 0.25% share of the trading fees. The official annual percentage yield (APY) has not been disclosed yet, but based on the experience of similar DEX (such as Orca), the initial APY may be between 50% and 150%, depending on the pool size and trading volume. In addition, PUMPSWAP also plans to introduce the “Lock Liquidity” feature, allowing users to lock tokens for 1-6 months to receive additional rewards.

4. Community attention and spread
   After PUMPSWAP went online, it quickly sparked heated discussions. On Telegram, at least 15 meme coin related channels (such as PumpFunHub, SolanaGems) started to promote, and the community members grew from 500 at the beginning of the launch to 4000.

5. Solana blockchain’s technical support
   PUMPSWAP operates on the Solana blockchain, leveraging its ability to process 65,000 transactions per second and gas fees as low as $0.00025. This high-performance feature makes it particularly suitable for high-frequency trading scenarios of meme coins. For example, a $100 PUMPSWAP transaction incurs only about $0.025 in gas fees, far lower than similar operations on Ethereum (which could be as high as $5-10).

Why focus on PUMPSWAP?

The continued heat of the Solana eco: By 2025, the trading volume of Solana’s DeFi and meme coin projects has surged, with daily active users exceeding 2 million. As a new member of the eco, PUMPSWAP is expected to get a piece of the action.

The continuation of meme coin culture: Pump.fun created multiple popular meme coins in 2024 (such as ‘WifCoin’ with a market value of up to 500 million USD), and PUMPSWAP inherits this popularity base, which may trigger a new wave of enthusiasm.

Early investment window: The current market value of PUMPSWAP is about 3-4 million US dollars, with a liquidity pool size between 200,000-300,000 US dollars, far from saturation. In comparison, Raydium’s daily trading volume has exceeded 1 billion US dollars, indicating that PUMPSWAP still has significant growth potential.

Team endorsement: Although the Pump.fun team keeps a low profile, its past successes (such as launching over 500,000 meme coins) have provided a trust foundation for PUMPSWAP.

How to participate in PUMPSWAP?

1. Prepare Solana wallet
   Download Phantom (phantom.app) or Solflare (solflare.com), create a new wallet, or import existing mnemonic phrase. Deposit at least 0.5-1 SOL for trading and Gas fees. In the wallet’s ‘Token Management’ section, manually add the PUMPSWAP address: GMk6j2defJhS7F194toqmJNFNhAkbDXhYJo5oR3Rpump, and the balance will be displayed after saving.

2. Access the PUMPSWAP platform
   Open your browser and enter the official website pumpswap.site (It is recommended to verify the link through the official account @PumpSwapOfficial to avoid phishing websites). Click on ‘Connect Wallet’, choose Phantom or Solflare, and enter the trading interface after authorization.

3. Trading or providing liquidity
   Buy PUMPSWAP: Select the SOL/PUMPSWAP trading pair, enter the purchase amount (e.g. 0.2 SOL), adjust the slippage to 10%-15%, click ‘Swap’ to confirm. After a successful transaction, the tokens will appear in your wallet.

4. Provide Liquidity: On the ‘Pool’ page, select ‘Add Liquidity’, enter the quantity of SOL and PUMPSWAP (e.g. 0.5 SOL + 500 PUMPSWAP), confirm to receive LP tokens, which can be used for mining rewards.

5. Before using, check the balance of the wallet to avoid connecting to unfamiliar websites. The frequent phishing incidents on the Solana chain suggest enabling Phantom’s “auto-lock” function, which automatically disconnects after 5 minutes of inactivity.

Future Outlook of PUMPSWAP

The future development of PUMPSWAP depends on multiple factors. Firstly, whether it can effectively integrate the user traffic of Pump.fun will be a key indicator. Secondly, the team plans to launch staking pools and NFT marketplace functions in the second quarter, which may further enhance the token value.

For example, users holding 1000 PUMPSWAP tokens may mint limited edition ‘PumpNFTs’ for auction within the eco. If the Solana eco continues to recover in 2025, the trading volume of PUMPSWAP may increase from the current $100,000 per day to the million-dollar level. However, its price volatility remains high, with a potential short-term increase of 10 times, but it may also fall back by 30%-50% due to market adjustments.

PUMPSWAP is an important attempt by Pump.fun eco to move towards decentralized trading, relying on Solana’s high performance and meme culture, providing a low-cost, high-efficiency trading platform.