- Pump.fun tests AMM liquidity pool to replace Raydium and retain transaction fees.
- Platform blocks hackers laundering funds from the $1.4B Bybit hack via meme coins.
- Pump.fun focuses on organic meme token growth while tackling pump-and-dump schemes.
Pump.fun is currently testing an automated market maker (AMM) liquidity pool on its testnet, with plans to replace Raydium as its third-party liquidity supplier.
According to blockchain researcher @trenchdiver101, as reported by Colin Wu, this move will create a more efficient system for meme tokens to migrate from Raydium to Pump.fun’s internal liquidity pool. If this works, this new function could help Pump.fun keep a larger share of transaction fees and maybe introduce a reward system for token holders.
AMM Test as Meme Coins Drive DEX Volumes
Pump.fun’s decision to test an AMM comes at a time when meme tokens continue to dominate decentralized exchange (DEX) volumes. The platform has already processed over $500 million in total swap fees, according to DeFiLlama data. Right now, about 1.4% of tokens launched on Pump.fun end up migrating to Raydium.
Even with these changes, Pump.fun faces challenges in ensuring liquidity stability for coins not associated with pump-and-dump schemes. The platform is focusing on organic growth by developing meme communities with long-term ability.
Related: Bybit Sees Surprise $4B Inflows After Major Hack as Partner Support Floods In
Pump.fun Blocks Bybit Hacker’s Money Laundering
Beyond its liquidity plans, Pump.fun has taken measures to address malicious activity on its platform.
The latest instance is when the platform blocked an attempt by a hacker connected to the $1.46 billion Bybit hack to transfer stolen funds through its system.
According to on-chain investigator ZachXBT, the hacker had been using the platform to trade meme coins, which are often used in money laundering schemes.
Hacker Laundered Millions Before Intervention
On February 22, the hacker took control of $1.08 million of the funds from the Bybit exploit and moved the stolen assets across multiple blockchains, turning the funds into meme coins.
Related: Pump.fun Receives Cease and Desist Letters From Two US Law Firms
The hacker had already raised over $26 million in trading volume by launching the “QinShihuang” token on Pump.fun before the platform intervened. By preventing the laundering of stolen funds, Pump.fun has sent a strong message about its approach to security and its efforts to combat criminal activities.
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