PumpSwap

PumpSwap is Pump.fun’s native decentralized exchange (DEX), launched in March 2025. It serves as the trading venue for tokens that have graduated from PumpFun’s bonding curve.

Program Address: pAMMBay6oceH9fJKBRHGP5D4bD4sWpmSwMn52FMfXEA

Migration from PumpFun

When a token’s bonding curve completes on PumpFun, it automatically migrates to PumpSwap:

• Instant migration: No waiting period or manual steps required
• Zero fees: Previously, migration to Raydium cost 6 SOL; PumpSwap eliminates this fee
• Locked liquidity: The SOL and tokens from the bonding curve are permanently locked as liquidity

Fee Structure

PumpSwap uses a tiered fee structure that decreases as market cap grows:

Market Cap (SOL)	Total Fee	Protocol	Creator	LP
0–420	1.25%	0.93%	0.30%	0.02%
420–1,470	1.20%	0.05%	0.95%	0.20%
1,470–2,460	1.15%	0.05%	0.90%	0.20%
…	…	…	…	…
98,000+	0.30%	0.05%	0.05%	0.20%

Fees are distributed between the protocol, token creators, and liquidity providers (LPs).

How the AMM Works

PumpSwap uses a constant product automated market maker (AMM), similar to Uniswap V2.

Constant Product Formula

The AMM maintains the invariant: x × y = k

• x = amount of tokens in the pool
• y = amount of SOL in the pool
• k = constant that must be preserved after each trade

Price Determination

The price is determined by the ratio of reserves in the pool. When you buy tokens:

1. You add SOL to the pool
2. The pool gives you tokens
3. The ratio shifts, making tokens more expensive
4. The product (k) stays constant

This creates automatic price discovery based on supply and demand.

Migrated Tokens vs. Direct Pools

Migrated Tokens (Safe)

Tokens that graduate from PumpFun have their liquidity permanently locked. No one can withdraw the initial liquidity, making these pools safe to trade.

Direct Pool Creation (Risky)

Anyone can create a new liquidity pool directly on PumpSwap without going through PumpFun’s bonding curve. These pools do NOT have locked liquidity.

Liquidity Rug Risk

For pools created directly on PumpSwap (not migrated from PumpFun):

• Withdrawable liquidity: The pool creator can remove their liquidity at any time
• Rug pull: If a large LP withdraws all liquidity, the pool becomes illiquid
• Stuck tokens: Remaining token holders cannot sell because there’s no liquidity to trade against

How to Stay Safe

• Prefer migrated tokens: Trade tokens that graduated from PumpFun (locked liquidity)
• Check LP distribution: For direct pools, verify that liquidity isn’t concentrated in a single wallet
• Watch for red flags: New pools with large single-wallet LP positions are high risk