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Trading Moment: “TACO-Trade” Leads the Crypto Rebound—Bitcoin Back at $115 k, a New Cycle Begins?
Market Snap-back & Leverage Reset A single sound-bite did the trick. After Trump and Vance struck a noticeably softer tone on the U.S.–China trade war, equity futures flashed green and crypto followed in a violent relief rally. The brutal draw-down that preceded it is already being framed as the pivotal “cycle flip” of 2025. Funding rates on perpetual swaps have collapsed to lows last seen in the depths of the 2022 bear, proof that the market has just lived through one of the deepest de-lever...
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A New Way to Launch: Bonding-Curve TGE for RION Today at 16:00 UTC, Binance Wallet will debut its first-ever Bonding-Curve Token Generation Event (TGE), releasing the native token RION of Aptos-native DEX Hyperion. Participation is limited to users who hold Binance Alpha points; pricing and liquidity will be determined in real time by an on-chain bonding curve.Protocol Design: Hybrid Order-Book + AMM + Aggregator Hyperion is a hybrid decentralized exchange built natively on Aptos. It fuses an...
Which New AI Projects Are Worth Researching Ahead of the Hype?
Discovering protocols before they become hot topics and sharing them with you is extremely interesting. In my earlier "Be Early" series, I introduced projects like @TopHat_One, @Duck_Chain, @Cortex_Protocol, and @Infinit_Labs. These insights mainly come from the Moni Discover tool by @getmoni_io, an intelligent platform that helps users discover early-stage protocols. So, what new findings are on my January watchlist? Let's take a look! Limitus: A New Platform Integrating Web2, Web3, and AI @...
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Pump.fun is no longer content with being a "traffic provider" for Raydium; instead, it aims to become a "controller" of liquidity.
The Matthew Effect, where the strong get stronger, has never ceased in the blockchain world. For example, Pump.fun has quietly started doing what Raydium does: today it stealthily launched its own AMM pool, attempting to divert the liquidity revenue that originally belonged to Raydium.
From Launchpad to AMM Pool: The Quiet Rise of Pump.fun's Meme Empire
Currently, the newly launched AMM pool (http://amm.pump.fun) has a very simple interface, allowing users to swap any token as they would with other DeFi products. However, the intentions behind this product may not be so straightforward.
Pump.fun has always attracted a large number of degens with its unique internal/external order book mechanism and memecoin culture. User transactions are first matched in Pump.fun's internal order book, relying on the platform's liquidity to complete trades. Once the internal order book is full, trades are routed to the external market, which actually depends on Raydium's liquidity pool.
Under this model, Pump.fun has been a "traffic provider" for Raydium but has also been subject to Raydium's rules. Every time a trade is routed to the external market, Pump.fun has to pay a portion of the trading fees, which ultimately flow to Raydium's liquidity providers (LPs).
Raydium itself is one of the most important AMM platforms in the Solana ecosystem and a crucial infrastructure for DeFi users to access liquidity. It also provides liquidity pool services for many projects on Solana, with its TVL (Total Value Locked) consistently ranking at the top of Solana.
The Business Logic Behind Building an AMM
By building its own AMM, Pump.fun can transfer the external market liquidity from Raydium to its own platform, thereby fully controlling the distribution of trading fees. If Pump.fun's strategy succeeds, Raydium will not only lose a portion of its liquidity sources but also face impacts on its revenue model and ecological status.
So, how does the math work out?
Raydium's Revenue Model: The "Hidden Cost" for Pump.fun
Under the current model, Pump.fun's external market trades rely on Raydium's liquidity pool, and each transaction generates a certain fee that ultimately flows into Raydium's ecosystem.
Raydium's standard fee structure:
0.25% fee per transaction, with:
0.22% allocated to Raydium's LPs.
0.03% used for $RAY buybacks and ecosystem support.
Pump.fun's trading volume:
Assuming Pump.fun's daily trading volume is $100 million, with 5% of the volume ($5 million) routed to Raydium's external market.
Pump.fun's hidden cost:
At a 0.25% fee, Pump.fun pays Raydium $12,500 per day, amounting to approximately $4.5625 million per year.
For a rapidly growing platform, this fee, although reduced, remains a dependency on an external platform.
Potential Revenue from Building an AMM
By building its own AMM, Pump.fun can transfer the external market liquidity from Raydium to its own platform and fully control the distribution of trading fees. So, how much potential revenue can this move bring?
New revenue model:
Assuming Pump.fun's AMM charges the same rate as Raydium (0.25%), but all fees are retained by the platform:
Daily external market trading volume remains at $5 million.
At a 0.25% fee, Pump.fun can directly earn $12,500 per day, amounting to approximately $4.5625 million per year.
Net revenue after LP costs: If Pump.fun's AMM does not rely on external LPs and instead provides liquidity itself, this income will be entirely retained by the platform without being shared with other liquidity providers.
What Else Does Pump.fun Value?
Building an AMM not only brings direct revenue increases but also significantly enhances Pump.fun's control over the ecosystem, laying the foundation for future development.
Under the current model, Pump.fun's external market trades depend on Raydium's liquidity pool, meaning Raydium controls the user trading experience and liquidity stability. With its own AMM, Pump.fun will fully control the rules and fee distribution of the liquidity pool, thereby strengthening its control over users.
By controlling liquidity, Pump.fun can further launch more DeFi products (such as perpetual contracts, lending protocols, etc.), building a closed-loop ecosystem. For example, Pump.fun can directly support the issuance and trading of memecoins through its AMM pool, offering more options to its community.
Token Price Changes
After Pump.fun announced the launch of its AMM, Raydium's token $RAY fell sharply, with a daily decline of 20%. This phenomenon may reflect market concerns about its future revenue and status.
On the other hand, after Pump.fun built its AMM pool, the MEME token Crack, which was used to test the liquidity pool, saw its price soar, with a peak market cap of $4 million.
Contract Address:
CitRGsrgU7NjaXsxdMFc7sfsxtSnPdtkhHJqbPvhpump
The Challenge Is Clear
If the AMM runs smoothly, Pump.fun will fully control external market liquidity, significantly boosting revenue. By integrating internal and external market liquidity, Pump.fun can build a self-sufficient on-chain Meme DeFi ecosystem.
From capturing attention to controlling the flow of funds, Pump.fun is clearly transitioning from "relying on external liquidity" to "owning liquidity." An innovative platform, with a larger user base, naturally has the opportunity to shake up the traditional DeFi status quo and on-chain ecosystem.
However, whether Pump.fun can truly challenge Raydium's position in the future will depend on its ability to balance liquidity strategy and user growth. More critically, it will depend on whether the bull market continues.
Timing and fortune play a significant role. Not only are retail investors competing, but projects are also fiercely battling each other in the ring.
Note on the Link
I encountered issues while trying to parse the provided link (http://amm.pump.fun). This problem might be related to the link itself or the network conditions. If you need the content of this webpage, please check the validity of the link and try accessing it again. If you have other questions or need further assistance, feel free to ask, and I'll be happy to help.
Pump.fun is no longer content with being a "traffic provider" for Raydium; instead, it aims to become a "controller" of liquidity.
The Matthew Effect, where the strong get stronger, has never ceased in the blockchain world. For example, Pump.fun has quietly started doing what Raydium does: today it stealthily launched its own AMM pool, attempting to divert the liquidity revenue that originally belonged to Raydium.
From Launchpad to AMM Pool: The Quiet Rise of Pump.fun's Meme Empire
Currently, the newly launched AMM pool (http://amm.pump.fun) has a very simple interface, allowing users to swap any token as they would with other DeFi products. However, the intentions behind this product may not be so straightforward.
Pump.fun has always attracted a large number of degens with its unique internal/external order book mechanism and memecoin culture. User transactions are first matched in Pump.fun's internal order book, relying on the platform's liquidity to complete trades. Once the internal order book is full, trades are routed to the external market, which actually depends on Raydium's liquidity pool.
Under this model, Pump.fun has been a "traffic provider" for Raydium but has also been subject to Raydium's rules. Every time a trade is routed to the external market, Pump.fun has to pay a portion of the trading fees, which ultimately flow to Raydium's liquidity providers (LPs).
Raydium itself is one of the most important AMM platforms in the Solana ecosystem and a crucial infrastructure for DeFi users to access liquidity. It also provides liquidity pool services for many projects on Solana, with its TVL (Total Value Locked) consistently ranking at the top of Solana.
The Business Logic Behind Building an AMM
By building its own AMM, Pump.fun can transfer the external market liquidity from Raydium to its own platform, thereby fully controlling the distribution of trading fees. If Pump.fun's strategy succeeds, Raydium will not only lose a portion of its liquidity sources but also face impacts on its revenue model and ecological status.
So, how does the math work out?
Raydium's Revenue Model: The "Hidden Cost" for Pump.fun
Under the current model, Pump.fun's external market trades rely on Raydium's liquidity pool, and each transaction generates a certain fee that ultimately flows into Raydium's ecosystem.
Raydium's standard fee structure:
0.25% fee per transaction, with:
0.22% allocated to Raydium's LPs.
0.03% used for $RAY buybacks and ecosystem support.
Pump.fun's trading volume:
Assuming Pump.fun's daily trading volume is $100 million, with 5% of the volume ($5 million) routed to Raydium's external market.
Pump.fun's hidden cost:
At a 0.25% fee, Pump.fun pays Raydium $12,500 per day, amounting to approximately $4.5625 million per year.
For a rapidly growing platform, this fee, although reduced, remains a dependency on an external platform.
Potential Revenue from Building an AMM
By building its own AMM, Pump.fun can transfer the external market liquidity from Raydium to its own platform and fully control the distribution of trading fees. So, how much potential revenue can this move bring?
New revenue model:
Assuming Pump.fun's AMM charges the same rate as Raydium (0.25%), but all fees are retained by the platform:
Daily external market trading volume remains at $5 million.
At a 0.25% fee, Pump.fun can directly earn $12,500 per day, amounting to approximately $4.5625 million per year.
Net revenue after LP costs: If Pump.fun's AMM does not rely on external LPs and instead provides liquidity itself, this income will be entirely retained by the platform without being shared with other liquidity providers.
What Else Does Pump.fun Value?
Building an AMM not only brings direct revenue increases but also significantly enhances Pump.fun's control over the ecosystem, laying the foundation for future development.
Under the current model, Pump.fun's external market trades depend on Raydium's liquidity pool, meaning Raydium controls the user trading experience and liquidity stability. With its own AMM, Pump.fun will fully control the rules and fee distribution of the liquidity pool, thereby strengthening its control over users.
By controlling liquidity, Pump.fun can further launch more DeFi products (such as perpetual contracts, lending protocols, etc.), building a closed-loop ecosystem. For example, Pump.fun can directly support the issuance and trading of memecoins through its AMM pool, offering more options to its community.
Token Price Changes
After Pump.fun announced the launch of its AMM, Raydium's token $RAY fell sharply, with a daily decline of 20%. This phenomenon may reflect market concerns about its future revenue and status.
On the other hand, after Pump.fun built its AMM pool, the MEME token Crack, which was used to test the liquidity pool, saw its price soar, with a peak market cap of $4 million.
Contract Address:
CitRGsrgU7NjaXsxdMFc7sfsxtSnPdtkhHJqbPvhpump
The Challenge Is Clear
If the AMM runs smoothly, Pump.fun will fully control external market liquidity, significantly boosting revenue. By integrating internal and external market liquidity, Pump.fun can build a self-sufficient on-chain Meme DeFi ecosystem.
From capturing attention to controlling the flow of funds, Pump.fun is clearly transitioning from "relying on external liquidity" to "owning liquidity." An innovative platform, with a larger user base, naturally has the opportunity to shake up the traditional DeFi status quo and on-chain ecosystem.
However, whether Pump.fun can truly challenge Raydium's position in the future will depend on its ability to balance liquidity strategy and user growth. More critically, it will depend on whether the bull market continues.
Timing and fortune play a significant role. Not only are retail investors competing, but projects are also fiercely battling each other in the ring.
Note on the Link
I encountered issues while trying to parse the provided link (http://amm.pump.fun). This problem might be related to the link itself or the network conditions. If you need the content of this webpage, please check the validity of the link and try accessing it again. If you have other questions or need further assistance, feel free to ask, and I'll be happy to help.
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