Pump.Fun May Launch Its Own AMM, Shaking Up Solana’s DeFi Market

Solana-based token issuance platform Pump.Fun appears to be developing its own automated market maker (AMM), according to a newly discovered URL, though no official announcement has been made.

An AMM enables decentralized trading by using liquidity pools instead of traditional order books. Smart contracts set token prices based on supply and demand, allowing trades without direct counterparties.

A URL, “amm.pump.fun,” reveals a swap interface with buy, sell, deposit, and withdrawal options—marking a major shift for Pump.Fun. Previously, tokens launched on the platform would migrate to Raydium, a Solana-based decentralized exchange. If Pump.Fun’s AMM replaces Raydium for token liquidity, it could impact RAY tokens, which have dropped 25% in response to the development.

Crypto trader @trenchdiver101 noted that Pump.Fun may now allow tokens to remain within its ecosystem, possibly increasing its revenue and offering incentives for token holders. While Pump.Fun has driven significant trading volume to Raydium, the latter still processes over $500 million in daily trades across major Solana pairs.

Despite having no native token, Pump.Fun has been one of the most profitable crypto platforms in the past year, amassing over $550 million in fees since March 2024. In just two weeks, it has recorded $2.4 billion in trading volume. Since launching, the platform has facilitated the creation of over 8 million tokens, including meme coins like FART, which reached billion-dollar market caps.

If Pump.Fun successfully integrates an AMM, it could reshape Solana’s DeFi landscape, increasing its dominance while disrupting Raydium’s liquidity model.