WOO X Research: Raydium vs. Pump.fun, LaunchLab Really Creates Wealth?

Author: WOO

Raydium is the top Dex on Solana, and Pump Fun is the biggest Launchpad. Interestingly, although they have different tracks and businesses, they still attack each other and try to win more revenue.

First up is Pump Fun's launch of PumpSwap, which has recently seen a $400 million daily trading volume, approaching Raydium's $600 million daily trading volume. Raydium officials even pointed out that Pump Fun contributed up to 41% of its AMM revenue in the past month, but after Pump Fun built its own PumpSwap, Raydium's traffic dropped sharply and was forced to launch LaunchLab to "take back liquidity dominance".

What's the difference between LaunchLab and Pump Fun? Let WOO X Research take you through some of the noteworthy projects.

A basic introduction to LaunchLab

LaunchLab launched by Raydium is essentially a "zero-code coin issuance tool + automatic liquidity migration service", with two main usage modes:

• JustSendIt mode: Open users to create tokens with one click, 85 SOL needs to be raised by default, and after the fundraising is successful, it will be automatically migrated to Raydium's AMM, and LP tokens will be burned to achieve liquidity lock-up.
• LaunchLab Pro mode: You can customize the total amount, you can customize the minimum fundraising of 30 SOL to issue, bonding curve slope, vesting conditions, and whether to enable AMM profit sharing (up to 10% of the transaction fee can be returned to the project party).

In terms of fee structure, Raydium charges a 1% basic handling fee, of which 50% goes to the "Community Pool", 25% is used for $RAY buyback, and 25% is used for infrastructure and trading funds

LaunchLab also allows third-party interfaces to connect to its backend services to build their own front-end for coin issuance. The most well-known of these is cook.meme

cook.meme is the first meme coin issuance platform that uses the LaunchLab contract but has its own UX front-end, focusing on zero fees, instant transactions and a simple UI, which has attracted many developers to try it as soon as it was launched, positioning it is a bit like a copy of Pump Fun's UI, but the underlying layer is bound to the liquidity of Raydium.

Raydium adopts such an open model, the purpose is not only to divert traffic, but to replicate the content and ecological flywheel that Pump Fun built through the front-end of the community.

LaunchLab V.S Rump.fun

Key projects

The most direct benefit of LaunchLab is definitely the $RAY (25% of the fee), and the price of $RAY has increased by about 8% after the announcement of LaunchLab. If LaunchLab can continue the boom, the buyback of $RAY will also be higher and higher, and when demand exceeds supply, there is an opportunity for price increases.

The life cycle of LaunchPad depends on how many "golden dogs" can be generated, and when the platform continues to create wealth, user assets will naturally be concentrated on the platform. After the asset is intensive, the probability of the birth of the golden dog will also increase, and finally form a positive flywheel closed loop.

So the first step of the flywheel was to have the Golden Dog, but unfortunately, within 24 hours of LaunchLab's launch, only $TIME of the graduation token had a market cap of more than $1 million. The rest of the tokens, such as $ARUA and $Gaydium, soared in market value in the early days of the launch, but in the end, the market decided to pull up the single-cap token.

So what are the separate narratives of $TIME, $ARUA and $Gaydium?

As mentioned above, Raydium allows third parties to connect to their routing platforms and issue coins, and currently Raydium, Cook.meme, and Pump Fun Robinhood are currently working with them, and $TIME is the first meme coin created by Cook.meme; Raydium's own coin is $ARUA, which was launched later than $TIME.

$Gaydium In addition to the meme, it was the developers of Raydium who put the contract address of $Gaydium in Rytdium's GitHub, but deleted it less than an hour later, causing the token to plummet.

$TIME

• Current market capitalization: 6 million
• Highest market capitalization: 8.5 million
• 24 HR trading volume: 30.2 million
• Number of holders: 7,600

epilogue

Raydium's LaunchLab seems to be a "belated counterattack", but the overall design has made a systematic response to the advantages of Pump Fun, not only providing a customized coin issuance model, but also expanding the open front-end strategy represented by cook.meme, with the goal of bringing traffic, fees, and narratives back to the Raydium ecosystem.

But whether LaunchLab can really make money and reignite a wave of meme craze still depends on three core elements:

• whether it can produce strong enough popular projects;
• whether the fee and liquidity design is retail friendly;
• Whether the ecosystem can quickly gather front-end tools and make network effects.

While it looks like all three elements need to be worked on at the moment, LaunchLab has only been open for less than a month, and it would be arbitrary to declare the platform a failure. The cryptocurrency world is ever-changing, and maybe the next hundredfold meme will be born in LaunchLab, so let's wait and see.