From launching platforms to AMM pools, the Meme empire of Pump.fun quietly emerged

The Matthew effect of "winner takes all" has never stopped in the blockchain world. Pump.fun is trying to challenge this effect and seize market share from Raydium.

Pump.fun recently quietly launched an independently developed AMM pool (//m.sbmmt.com/link/6f3ebe425120e7ee621966824bafee23.

Pump.fun has attracted a large number of users with its unique internal and external disk mechanism and Meme currency culture. Trading is first matched in the inner trading of Pump.fun. When the inner trading capacity is insufficient, the transaction is routed to the outer trading, and the outer trading relies on the liquidity pool of Raydium. In this mode, Pump.fun has always been the "traffic entrance" of Raydium, but it is also subject to Raydium's rules and requires some transaction fees to be paid.

Raydium is one of the most important AMM platforms in the Solana ecosystem, and its TVL has been leading for a long time.

Pump.fun's move is intended to get rid of its dependence on Raydium and become the "controller" of liquidity.

The strategic significance of self-built AMM pool

By building a self-built AMM pool, Pump.fun can transfer foreign disk liquidity to its own platform and fully control the distribution of transaction fees. If successful, Raydium will face the risk of liquidity loss, reduced revenue and damaged ecological status.

The specific profit analysis is as follows:

1. Raydium's revenue model: "hidden cost" of Pump.fun

Under the current mode, Pump.fun foreign transactions rely on Raydium and require a handling fee. Raydium standard charges are 0.25% per transaction, with 0.22% allocated to LP and 0.03% for $RAY repo and eco-support. Assuming that Pump.fun's daily transaction volume is $100 million, of which 5% ($5 million) are routed to Raydium's foreign exchange, Pump.fun will pay Raydium a daily payment of $12,500, about $4,562,500 per year.

2. Potential benefits of self-built AMM

After building your own AMM, assuming the charging standard is the same as Raydium (0.25%), but all fees belong to Pump.fun, you can earn $12,500 per day, about $4,562,500 per year. If Pump.fun is self-sufficient in liquidity, there is no need to share the share with LP, and the benefits will be higher.

3. Strategic Objective: Overcome financial gains

In addition to financial returns, self-built AMMs can also enhance Pump.fun's control over the ecosystem. After getting rid of the dependence on Raydium, Pump.fun can launch more DeFi products and build a closed-loop ecosystem, such as directly supporting Meme coin issuance and trading.

Token price fluctuations

After Pump.fun announced the launch of its own AMM, the price of $RAY fell, with a daily decline of 20%.

At the same time, the price of a Meme coin Crack used to test the new AMM pool of Pump.fun soared, with a market value of US$4 million at one point.

CA:

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Challenges and opportunities coexist

After successfully running self-built AMM, Pump.fun will fully control the liquidity of the external disk, significantly increase revenue, and build a self-consistent Meme DeFi ecological closed loop. This marks the transformation of Pump.fun from "relying on external liquidity" to "own liquidity".

Whether Pump.fun can shake Raydium's position depends on its liquidity strategy, user growth and market environment. The competition among blockchain projects is fierce, and the final outcome depends on many factors.

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