Solana automated market maker Raydium prepares to branch out and develop its own LaunchLab for Pump.Fun.

Solana exchange and the automated market maker Raydium have reportedly decided to split from Pump.Fun and are developing a new platform called LaunchLab. Pump.Fun is developing its own Automated Market Maker (AMM)) and is preparing to part ways with Radium, effectively severing its informal partnership with Raydium. On Raydium's side, preparations for the split are also underway, maintaining a friendly relationship with Pump.Fun while gradually branching out into a new platform.

The Pump.Fun meme coin, with a market value of $69,000, deposited into the Raydium trading pool has been destroyed. Data from Blockworks Research shows that in the past thirty days, the Pump.Fun meme coin accounted for 41% of the Raydium swap fee revenue (Swap Fee Revenue). Investors estimate that the transfer of tokens to internal market makers at Pump.Fun has led to a significant decline in Raydium's revenue, resulting in a 25% drop in Raydium's native token in February.

Raydium branched out Pump.Fun and developed its own platform.

Raydium's balance sheet shows it holds approximately $168 million. The benefit of having a large amount of capital is that it allows the company to quickly construct a branch similar to Pump.Fun. Raydium core contributor Infra revealed that they had long planned to develop LaunchLab but had been postponing the project because they did not want the team to feel that Raydium would be competing directly with Pump.Fun. Raydium believes that the product-market fit of Pump.Fun is attributed to Raydium's infrastructure. Although they believe that Raydium's liquidity pool may attract users, Infra does not see LaunchLab as a killer for Pump.Fun.

Infra indicates that LaunchLab is not intended to replace Pump.Fun or any other platform, but rather provides an alternative for teams that do not want to develop their own programs from scratch, as well as for Pump users who prefer to migrate pools using Raydium's AMM v4.

How LaunchLab Works

LaunchLab will provide linear, exponential, and logarithmic combined curves that correspond to token demand and price, allowing third parties to set their own fees. In addition to offering joint curves (Bonding Curves) and flexible rates, LaunchLab will also support various quoted tokens beyond SOL and provide vault integration for Raydium's liquidity providers, allowing meme coin issuers to permanently ensure meme coin swap transaction fees. Infra indicates that LaunchLab is a key foundational part of the extensive toolkit launched by Raydium for creating meme coins.

This article discusses Solana's automated market maker Raydium preparing to branch out Pump.Fun, which developed its own LaunchLab, first appearing in Chain News ABMedia.