Solana

Memecoin

Raydium

Challenge

<a href="https://raydium.io/swap/">Raydium</a>, <a href="https://bsc.news/post/solana-blockchain-ecosystem-deep-dive">Solana</a>’s largest decentralized exchange (DEX), is gearing up to launch&nbsp;LaunchLab, a <a href="https://bsc.news/post/what-are-memecoins-guide-how-they-work-2025">memecoin</a> launchpad designed to compete directly with&nbsp;<a href="https://pump.fun/board">Pump.fun</a>, according to Blockworks. The move comes after reports surfaced that Pump.fun is developing its own&nbsp;automated market maker (AMM), signaling a potential split from Raydium’s infrastructure.
The move signals a growing&nbsp;power struggle within Solana’s <a href="https://bsc.news/post/decentralized-finance-defi-comprehensive-guide">DeFi</a> space. Memecoins have become a major revenue source for Raydium, with Pump.fun-generated tokens contributing&nbsp;41% of its swap fees over the past 30 days.&nbsp;
<h2 dir="ltr" id="span-span-strong-why-raydium-is-launching-a-pump-fun-competitor-strong-span-span">Why Raydium is Launching a Pump.fun Competitor</h2>
Raydium’s relationship with Pump.fun has been beneficial—but fragile. The current setup allows Pump.fun tokens that hit a&nbsp;$69,000 market cap to transition into&nbsp;Raydium’s trading pools, providing liquidity and revenue to the exchange. However,&nbsp;Pump.fun’s new AMM threatens to sever this link, pulling swap fees away from Raydium and disrupting its revenue model.
Raydium’s response?&nbsp;LaunchLab.
<ul>
 <li>Customizable bonding curves – Projects can choose&nbsp;linear, exponential, or logarithmic pricing models for their tokens.</li>
 <li>Flexible fee structures – Unlike Pump.fun, LaunchLab will allow&nbsp;third-party user interfaces (UIs) to set fees.</li>
 <li>Expanded token support – LaunchLab will enable launches with&nbsp;multiple quote tokens, not just SOL.</li>
 <li>Liquidity protection – It will integrate with&nbsp;Raydium’s liquidity provider locker, ensuring swap fees remain secure.</li>
</ul>
By offering a more&nbsp;versatile and decentralized alternative, Raydium hopes to&nbsp;retain developers and liquidity providers who might otherwise shift to Pump.fun’s ecosystem.
<h2 dir="ltr" id="span-span-strong-pump-fun-s-amm-move-sparked-the-conflict-strong-span-span">Pump.fun’s AMM Move Sparked the Conflict</h2>
Pump.fun’s rise has been meteoric. Launched in early 2024, it quickly became&nbsp;Solana’s go-to memecoin factory, driving millions in trading volume. But rumors of Pump.fun&nbsp;building its own AMM began circulating months ago.
When the news&nbsp;leaked last month, it&nbsp;triggered a sharp reaction in the market. Raydium’s native token,&nbsp;RAY, <a href="https://coinmarketcap.com/currencies/raydium/">plummeted 25%</a> in February, as investors feared a&nbsp;major loss of revenue once Pump.fun fully migrates to its own liquidity pools.
Even after the&nbsp;flash crash, Raydium holds&nbsp;$168 million on its balance sheet, according to Blockworks Research.&nbsp;
Raydium’s&nbsp;core contributor, Infra, revealed that the exchange had been working on a launchpad for months but had kept it&nbsp;on hold to avoid&nbsp;direct competition with Pump.fun. That restraint ended the moment Pump.fun’s AMM plans became public.
<h2 id="strong-how-launchlab-differs-from-pump-fun-strong">How LaunchLab Differs from Pump.fun</h2>
While LaunchLab and Pump.fun share a similar bonding curve model, there are key differences:
<div>
 <figure class="table">
 <table>
 <thead>
 <tr>
 <th>Feature</th>
 <th>Pump.fun</th>
 <th>LaunchLab (Raydium)</th>
 </tr>
 </thead>
 <tbody>
 <tr>
 <td>Fee Structure</td>
 <td>Platform-controlled</td>
 <td>Third-party UIs set fees</td>
 </tr>
 <tr>
 <td>Token Support</td>
 <td>SOL-only</td>
 <td>Multiple quote tokens</td>
 </tr>
 <tr>
 <td>Liquidity Protection</td>
 <td>No LP locking</td>
 <td>Raydium LP locker integration</td>
 </tr>
 </tbody>
 </table>
 </figure>
</div>
Infra clarified that LaunchLab isn’t meant to kill Pump.fun but rather to offer an alternative for teams who prefer Raydium’s liquidity pools and AMM v4 infrastructure.
<blockquote>
 “LaunchLab isn’t about replacing Pump or any other platform — it’s an alternative for teams who don’t want to develop their own programs from scratch, and for Pump users who prefer Raydium’s AMM v4 for pool migrations,” Infra said.
</blockquote>
<h2 dir="ltr" id="span-span-strong-the-high-stakes-battle-for-memecoin-liquidity-strong-span-span">The High-Stakes Battle for Memecoin Liquidity</h2>
The memecoin sector on Solana has become a&nbsp;key revenue driver for Raydium. In 2024 alone, Raydium generated&nbsp;$154 million in swap fees, with&nbsp;Pump.fun contributing a significant portion of that revenue.
But with Pump.fun pulling away, Raydium&nbsp;risks losing a major source of trading volume. The exchange is now betting on&nbsp;LaunchLab to keep liquidity within its ecosystem and attract&nbsp;new token launches.
At the same time, Pump.fun is facing&nbsp;its own challenges:
<ul>
 <li>Declining "graduation rates" – The percentage of Pump.fun tokens successfully transitioning to&nbsp;full tradability on Solana DEXs has dropped&nbsp;below 1% since February 17.</li>
 <li>Market correction – The broader crypto market downturn has&nbsp;hit memecoins hard, leading to lower trading activity.</li>
 <li>RAY’s price struggles – The&nbsp;30% drop in RAY following the AMM rumors signals investor concerns about&nbsp;Raydium’s future revenue.</li>
</ul>
<h2 dir="ltr" id="span-span-strong-what-s-next-strong-span-span">What’s Next?</h2>
Raydium’s&nbsp;LaunchLab is set to go live soon, and the battle for&nbsp;memecoin dominance on Solana is just heating up.
<ul>
 <li>If&nbsp;Pump.fun successfully migrates liquidity, Raydium could see a&nbsp;major decline in swap revenue.</li>
 <li>If&nbsp;LaunchLab gains traction, it could&nbsp;keep liquidity within Raydium’s pools, softening the blow of Pump.fun’s AMM.</li>
 <li>Both platforms could&nbsp;coexist, offering different models for token launches and liquidity management.</li>
</ul>

Raydium to Launch Memecoin Rival to Challenge Pump.fun

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