Pump.fun Strengthens Liquidity and Security Measures Amid Growing DEX Activity

• Pump.fun is testing an AMM liquidity pool on its testnet to replace Raydium and improve meme token migration efficiency.
• The platform has processed over $500 million in swap fees, with 1.4% of tokens launched migrating to Raydium.
• Pump.fun blocked a hacker from laundering stolen Bybit funds through its platform after the attacker generated $26 million in trading volume.

Pump.fun is currently testing an automated market maker (AMM) liquidity pool on its testnet. The platform aims to replace Raydium as its third-party liquidity supplier. According to blockchain researcher @trenchdiver101, this transition will enable a more efficient process for meme tokens to shift from Raydium to Pump.fun’s internal liquidity pool.

If successful, the new AMM could allow Pump.fun to retain a larger portion of transaction fees. Additionally, the system may introduce a reward mechanism for token holders. As meme tokens continue to dominate decentralized exchange (DEX) volumes, this development could provide the platform with greater control over its liquidity operations.

Meme Tokens Continue to Drive DEX Activity

The decision to test an AMM coincides with a surge in meme token activity on decentralized exchanges. According to DeFiLlama data, Pump.fun has already processed over $500 million in total swap fees. Currently, around 1.4% of tokens launched on the platform eventually migrate to Raydium.

Despite these advancements, Pump.fun faces challenges in maintaining liquidity stability for coins not associated with pump-and-dump schemes. The platform is working towards organic growth by fostering sustainable meme communities with long-term potential.

Pump.fun Blocks Money Laundering Attempts

Beyond liquidity improvements, Pump.fun has reinforced its security measures to prevent illicit transactions. Recently, the platform intercepted an attempt by a hacker connected to the $1.46 billion Bybit hack who sought to transfer stolen funds through its system.

On-chain investigator ZachXBT reported that the hacker was using Pump.fun to trade meme coins, a common strategy in money laundering schemes. By blocking these transactions, the platform demonstrated its commitment to maintaining security and integrity within its ecosystem.

Before Pump.fun intervened, the hacker had already transferred $1.08 million of the stolen funds across multiple blockchains, converting them into meme tokens. The attacker had launched a token named “QinShihuang” on Pump.fun, generating over $26 million in trading volume before their activity was halted