DEX Raydium on the Solana network has launched an analog of PumpFun to create meme tokens

What’s new? The team at Raydium, the leading decentralized crypto exchange (DEX) in the Solana blockchain ecosystem, has unveiled its own token launch platform called LaunchLab. With its help, any user with no programming knowledge can create a coin for free and start earning income through a referral program or as a share of trading fees.

Developers’ blog

What else is known? The platform offers two modes of asset launch: JustSendit with standard settings and LaunchLab for customization of parameters. In both cases, at the first steps the creator needs to specify the name and ticker of the future asset, as well as upload its icon. Optionally, a description and links to social networks and the project’s website can be added.

If the work is carried out in JustSendit mode, then it is necessary to authorize and sign the message, thus securing the crypto wallet address of the asset’s creator. After the creation of the asset, you can make the first purchase yourself to protect against sniping, the instant purchase of new assets on DEX using automated solutions and subsequent sale on a sharp rise.

Once the asset launch transaction is confirmed, it becomes available for trading based on a bonding curve smart contract. This mechanism allows determining the price of a token based on its circulating supply and providing liquidity without order books and external suppliers.

Once the bonding curve of a token created in JustSendit mode reaches 85 SOL coins, the token and liquidity are transferred to the trading pool of the Raydium exchange itself.

In this mode, the creator can receive referral rewards from users who trade through his link, which can be obtained from the token’s page.

As for the more complex LaunchLab mode, the parameters can be set independently. Thus, the creator specifies the total volume of token supply and the number of SOL coins to be collected within the bonding curve to transfer the trade to the Raydium pool. So, a smaller SOL volume will move the token to the pool faster, but with less liquidity.

The minimum limit is 30 SOL. In addition, you can specify the proportion of the supply to be traded within the bonding curve: minimum 20% and maximum 80%.

There is also a token distribution mechanism for this mode: the creator can specify the wallets to which tokens will be sent after launch.

Finally, in LaunchLab mode, the creator can claim 10% of the trading fees paid to liquidity providers (LPs) after the asset is transferred to the Raydium pool. 50% of the trading fees are returned to the community.

The team will allocate 25% of LaunchLab’s transaction fees to buy back the Raydium (RAY) native token. The asset is ranked 107th overall cryptocurrency by market capitalization at $669,64 million and is trading at $2,31, having added 8,3% overnight. The weekly increase was 36,6%.

The LaunchLab platform new is a competitor to Pump.fun, which is the largest launchpad of meme tokens and other coins in the Solana ecosystem. Pump.fun, which previously had no exchange of its own, used Raydium to support secondary market trading for tokens whose capitalization reached a certain threshold.

At the beginning of the year, the percentage of tokens launched on Pump.fun and subsequently listed on Raydium exceeded 1,5%, leading the Pump.fun team to decide to launch a PumpSwap co-listed exchange to preserve liquidity in its ecosystem.

DEX PumpSwap, launched in March, reached a trading volume of $10 billion in just ten days and earned $20 million in fees. At the time of writing, PumpSwap’s total trading volume has reached $32,3 billion. By comparison, Raydium, which launched in February 2021, has a figure above $493,78 billion.

Back in February, analysts noted that the successful launch of PumpSwap could lead to a 30-50% decline in Raydium trading volume, and amid this news, RAY lost more than 60% in a month. So, LaunchLab was the Raydium team’s response to the launch of PumpSwap by the Pump.fun team.

Both projects now have their own exchanges and launchpads, keeping liquidity in their internal ecosystems.