Raydium aims to compete with the Solana-based memecoin launching platform, Pump.fun, by introducing its own product, LaunchLab.
Per Blockworks, the Solana DEX, and automated market maker Raydium is launching a launchpad similar to Pump.fun.
This new product will enable users to create and launch cryptocurrency tokens, much like the well-known pump.fun platform. However, Raydium plans to take things a step further with some exciting twists.
Raydium has made a name for itself by letting users trade tokens quickly and cheaply using something called an automated market maker, or AMM. Now, with LaunchLab, they want to give token creators a powerful new tool. The platform will let people launch their tokens using a system called bonding curves.
A bonding curve is a pre-programmed formula (usually a curve like linear, logarithmic, or exponential) that determines how much a token costs based on how many tokens are already in circulation. As more tokens are minted or bought, the price increases along the curve.
Conversely, when tokens are sold or burned, the price decreases. This creates a self-regulating system without the need for traditional intermediaries like centralized exchanges.
This setup sounds a lot like what pump.fun offers, but goes beyond it. LaunchLab will allow creators to use different types of currencies for trading, not just Solana’s SOL token. That grants more flexibility to users who want to experiment with their projects.
Another significant improvement LaunchLab brings is how it connects directly to Raydium’s existing system. After a token is launched on Pump.fun, it follows a bonding curve and must reach a $69,000 market cap before automatically transiting to Raydium’s liquidity pools.
However, the LaunchLabs will offer a direct listing on Raydium DEX. This smooth connection could make LaunchLab a go-to choice for anyone looking to start a token and get it trading fast.
The timing of this announcement raises some eyebrows. Just recently, pump.fun, a platform Raydium used to work closely with,
This follows the news that Pump.fun is developing its own AMM, which saw the Raydium token fall sharply. The Pump.fun AMM will redirect transaction fees away from Raydium. Previously, tokens launched on Pump.fun often transitioned to Raydium for trading, creating a perfect partnership.
But now, both platforms appear to be stepping into each other’s territory. Pump.fun wants to handle trading, and Raydium wants to handle token launches. Both will compete and collect fees.
