Diving Into the PumpFun Data | Round Table Clip

Transcript

I want to dive deeper here and we've got Jacob on to talk more specifically about a bunch of Pump Fund data. Um, speaking of highly revenue generating apps, Pump Fund has been one of the killers there. The downside for I think people interested in the liquid token space is that there is no token for Pump Fund. Um, so the associated upside, you might have had to find that in other places. Um, but you know, as you mentioned, Mark, there are there's other venues where that has been possible. you know, there's Jupiter's tokens, there's Dex tokens, there's there's other things out there. Um, but when we think about Pump Fun, I guess I will jump to real quick.

They recently brought back or, you know, working on bringing back live streaming. they dropped um an update that the live stream component of the platform is coming back alongside a moderation policy which um supposedly they had the first time around but maybe was not clear um and they just didn't have the resources to properly sort of watchdog um the activity and handle the influx of of craziness that was going on um in the initial concept. But it is interesting to see them bring this back. I know in a recent interview Alon mentioned that the team has grown to something like 50 or 60 employees now. Um I'm sure they've also maybe beefed up um some of their backend systems to maybe do automated detecting of certain types of things

that go against the rules outlined here, but um basically it prohibits all of the content that people were outraged about um on Twitter back when live streaming blew up on Pump. So violence, harassment, sexual content, etc. Um, this isn't surprising. When we talked about it back then, I I think we kind of saw this as an inevitability. If their desire was to uh eventually like have this be a core part of the platform, they were going to have to implement, you know, some policies and guidelines um to sort of keep up with social sentiment and prevent people from, you know, writing off writing off the platform entirely and and getting people um to to keep using the platform. as we've seen with other like major media platforms like YouTube and and Twitch,

though in their case it's usually to keep advertisers on the platform. In this case, it's to prevent community outrage. Um, but jumping from there, I guess what I want to dive into today as far as pump goes, and we have a bunch more data now that we have a pump fund dashboard um on the Blockworks data site, is a couple of questions. One, they just launched Pump Swap a few weeks ago. um digging into a little bit of like whether or not that's been successful is maybe a first question. I think everyone is looking around and there was a ton of like you know I spoken with the Radium guys on Twitter a little bit here and there around like whether this is like a winner or not like whether they're going to whether pump is going to be able to take volumes away from Radium. Um I think in the case

of of new pairs it's kind of evident that was going to happen. We did have a chart from a while back that I'll just throw up real quick um where we were looking at volumes by pool age and just younger like less than 30 days um pools were seeing a significant bulk of the trading volume. Um and when you looked at like pump fund trading volume as a percentage of total uh radium volume it was it got up to a massive like some at some cases like 70% of total volumes um at the peak. So, it's not surprising that that Pump Fund would go after some of that. But, um, I guess Jacob, I want to let you talk here some of your like big takeaways and key findings as far as the pump swap launch and just generally

like trends that we're seeing in pump fun. Um, what what are the things that we should be paying attention to? Well, I think the first thing is I think the success of Pump Swap is really going to be determined based off of how successful Radium's launchpad is, which I think is called Launch Labs. Um I mean Pump Fund's main kind of thesis on kind of launching their own own AM own AMM is that um essentially you know the token life life cycle the way it goes is you know they take essentially a 1% fee on the bonding curve and then once that you know reaches 85 soul acred in the bonding curve that used to go to radium but pump fund would also take this kind of six

soul graduation fee and that was the end of the token. on terms of monetization for Pump Fund for these like tokens and you know like you seen all these big tokens that have launched from Pump Fund with you know a billion dollar market caps and you know huge trading volume and Pump Fun's not really getting any of that. So like their main kind of you know motivation for this has been pretty much to try to capture that fee which has they've you know launched their pools which are kind of 25 bips which corresponds to exactly the same amount of trading fees as the Radium pool. Um, but also like they also took away the graduation fee, which is like a six soul type of fee. And I think over time what you're going to see is like they're going to have to like really, you know,

pump some volume out to actually make up for that because that graduation fee like, you know, at its peak in January, February of this year, it was about like $1.5 million of revenue per day. And like that's that's going to be pretty hard because the five bips that they're getting off of um the trading volume itself is, you know, very small and insignificant for that. And kind of like what you're looking at right now is that it's really just an extension of their bonding curve platform. Like there isn't really any volume for any of these non-mecoin pairs yet. And I mean I think it makes sense on the surface like there's one pool option. It's 25 bips.

there's 20 bips to LPS, five to the actual protocol. It's just not going to be competitive with, you know, the other existing platforms out there that are charging one BIP on a, you know, a sole USDC pair. And like we've kind of seen that as well. Like there was a bunch of these tokens that kind of had these bridging over events and there's been very little volume whatsoever on them. Like for example, like the chart you're showing, it's about, you know, I think the max was like 300K on a particular day. I think probably the first day or second day and other than that it's been pretty insignificant and like I don't I don't really see how they can be competitive in terms of that and like there's some like other types of things like for example like you know there's

this thing in with memecoin volumes that at least for AMMs they have to kind of think about because they actually incur a bit of price risk in terms of collecting the fees. So I can give like an example like Radium and Orca the way that they collect fees is based off of like a periodic of time. So it doesn't happen after every single trade. Essentially the fees get acred into the LP and then after a certain threshold or a certain amount of time that has passed they'll actually collect them. But you can imagine obviously with like volatile assets like memecoins the time that the trade takes place can also differ by the time that you know the price of when they actually collect those fees. So one thing that Pump Funds done is that every

single trade they actually take that you know five BIP on the quote asset of the pool at the time of the trade and that's really just for kind of like this memecoin trading like you wouldn't need this type of logic for you know if you're doing a sole USDC pair because you're not that concerned about the fact that you know a token can go from you know one to zero in like a matter of hours and you won't be able to collect any of the actual revenue. So you kind of see this happen on like for example radium like they might have volumes and revenues reporting this but the actual cash flow that goes to the treasury or to the buybacks can actually differ quite a bit because of that. Uh, I think there's probably some trade-off because it's adding additional logic to the

every single trade that happens on the AMM and like you know the pools are pretty vanilla and I think with Radium itself like they're pretty diversified in terms of like they're still getting a decent amount of volume from Soul USDC. So I think they can probably be pretty competitive in terms of the pricing on terms of the you know their launchpad itself. Um, there's been quite a lot of launchpads, you know, in the last probably six months. Like there's been Flaunch and Clanker and whatnot on base and there's even been a launchpad called Pumpkin. Fun. Yeah, that's an actual name. Um, but none of them have really generated anything. It's like, you know, they offer all these creator fees, all these cool features, but there's no attention on them. So, you kind of have

this cold start problem. Whereas Radium, I think like it's a pretty established deck. I can't think of another DEX has, you know, the size of Radium that has launched the launchpad. And I think they can be pretty competitive on the fee. And I know Pump Fund, um, they kind of mentioned in the future they're going to add this creator fee to the I think the 25 Bips. I don't know if they're taking it out of the LP or if the protocol fee, but I think they're going to probably have to eat that fee in the future because I think Radium's probably going to offer that. And I think they even mentioned on Twitter that they, you know, brought it up to Pump Fund and, you know, Pump Fund didn't really want to even use that pool. They'd rather build their own. So I think in the

future like the success is really going to be on how they can actually defend their you know dominant position in terms of memecoin trading.