Solana’s dominant automated market maker (AMM) Raydium hit again Monday on rumors that main quantity driver Pump.Enjoyable was getting ready to launch its personal AMM.
Abandoning Raydium entire hog could be a “strategic miscalculation” for the massively well-liked — and worthwhile — memecoin manufacturing unit, core contributor InfraRAY mentioned in a put up on X. He solid doubt on the notion that Pump.Enjoyable might replicate its success if it swaps Raydium out for in-house buying and selling infrastructure.
Token buyers dumped RAY en-masse this weekend after hawkeyed observers seen Pump.Enjoyable was apparently testing its personal AMM, presumably with the intent to switch Raydium’s longstanding liquidity swimming pools as its platform of selection. Such a transfer would shake up the economics of decentralized token buying and selling on Solana.
Proper now, Raydium, the chain’s largest AMM platform, captures buying and selling charges generated by Pump.Enjoyable memecoins that “graduated” from the launchpad to its personal swimming pools. The association — in place since Pump.Fun’s earliest days — has been a monetary boon for Raydium
But it surely additionally leaves Pump.Enjoyable out of the long-term upside of the tokens its customers create. That is to not say it is making nothing: Pump.Enjoyable has amassed half a billion {dollars} on the charges it collects from early-stage token launches, one in all crypto’s grandest warchest.
Raydium is presently producing over $1 million in charges daily from buying and selling throughout all its liquidity swimming pools, not simply these of Pump.enjoyable tokens. That mentioned, over 30% of Raydium’s day by day buying and selling quantity comes from Pump.enjoyable tokens, in keeping with a Dune dashboard, which means a very good share of its charges might dry up if Pump.Enjoyable switches away.
“100%, revenue hit is real,” InfraRAY mentioned in a message to CoinDesk. However he cautioned that the market’s 30% haircut on RAY tokens was “overblown” and partially because of SOL’s personal weak point.
He mentioned any pivot to a brand new AMM might hit myriad points: insufficient supporting infrastructure, low demand for migrated tokens, a flop on quantity at launch.
“I think that’s a real risk they are overlooking but I could be wrong,” InfraRAY mentioned.
Pump.Enjoyable co-founder Alon Cohen declined to remark.
