Pump.fun launches lending platform to finance memecoin buys

Pump.fun is launching a lending level to alteration users to bargain memecoins and non-fungible tokens (NFTs) with borrowed cryptocurrency, the Solana-based memecoin launchpad said. 

Dubbed Pump.Fi, the onchain lending protocol provides “immediate… financing for [any] integer asset,” Pump.fun said successful an April 1 X post.

According to Pump.fun, borrowers wage one-third up beforehand and the remainder implicit 60 days. In addition, Pump.Fi volition make a marketplace for lenders to bargain debt. The protocol did not specify however Pump.Fi — which doesn’t bash recognition checks — plans to guarantee repayment of undercollateralized onchain loans. 

Pump.Fi volition fto users get to bargain memecoins. Source: Pump.fun

Related: Pump.fun launches ain DEX, drops Raydium

Competitive marketplace

Pump.fun has been grappling with a crisp drawdown successful memecoin trading enactment connected Solana aft respective high-profile scandals — specified arsenic the LIBRA token’s disastrous launch — soured sentiment connected memecoins among retail traders. 

Adding onchain lending has the imaginable to gully much liquidity into the space, which has seen trading volumes stabilize successful caller weeks, according to data from Dune Analytics.

Pump.fun has besides been expanding its offerings to enactment up of mounting contention from rival platforms.

Raydium, Solana’s largest decentralized speech (DEX) by volume, plans to rotation retired its ain memecoin launchpad, LaunchLab. 

Other rival protocols — including Daos.fun, GoFundMeme, and Pumpkin — are besides vying for a stock of Solana’s memecoin market. 

Number of tokens successfully “bonding” connected Pump.fun each day. Source: Dune Analytics

On March 20, Pump.fun launched its ain DEX — known arsenic PumpSwap — to regenerate Raydium arsenic the last location for tokens that successfully bootstrap liquidity connected Pump.fun.

Switching to PumpSwap has streamlined PumpFun’s process for listing caller tokens and chopped costs for users, it said.

PumpSwap besides plans to commencement distributing a information of trading fees to coin creators, according to Pump.fun co-founder Alon.

The recently launched DEX has already captured a much than 10% stock of Solana’s trading volumes and adjacent overtaken Raydium — on with each different Solana app — successful 24-hour fees, according to information from Dune Analytics and DefiLlama. On April 1, PumpSwap generated astir $4 cardinal successful fees.

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