What to know:

• Solana-based decentralized exchange Raydium is launching its own token issuance platform, LaunchLab, to boost revenues and user engagement.
• Raydium’s native RAY tokens witnessed a 13% increase in the past 24 hours, outperforming the larger market.
• LaunchLab will feature three types of bonding curves for token pricing and permit third-party UIs to determine their fees.

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Raydium, a decentralized exchange on Solana, is initiating its own token issuance platform that will launch soon. This move is intended to draw more revenue for the popular trading service. In the last day, the RAY token saw a rise of 13%, surpassing a 1.62% gain in the market represented by the CoinDesk 100 (CD100) index.

LaunchLab will initially take after the popular token issuance platform Pump.Fun, as reported by Blockworks, but will include additional features that enhance the launch experience.

The platform will employ three types of bonding curves tailored to meet the demands and pricing of tokens, along with offering third-party UIs the ability to set their own fees. A bonding curve is defined as an automated pricing mechanism that dynamically adjusts as tokens are traded on decentralized exchanges.

Raydium developer @0xINFRA mentioned in a post on X that this new service could seamlessly integrate with applications already utilizing Raydium’s existing offerings, including AMM v4 and CLMM pools.

“We’re not here to compete with launchpads using Raydium; LaunchLab facilitates on-chain token launches for teams using a neutral, permissionless infrastructure,” he remarked.

Additional Insights

Raydium currently generates over a million dollars in fees daily from its various liquidity pools, with more than 30% of trading volume attributed to Pump.Fun tokens, as indicated by Dune data.

Pump.Fun allows anyone to issue a token with a minimal capital investment of less than $2, after which creators select the total number of tokens and their associated themes and images. Automatically, these tokens are listed for trading on Raydium once they achieve a market cap of $69,000.

However, it appears that, as of February, Pump.Fun has decreased reliance on Raydium by introducing its AMM tool, facilitating token trading directly on Pump.

Recently, @0xINFRA refuted initial speculations that LaunchLab is merely a rebranded version of Pump.Fun, emphasizing that while LaunchLab’s user interface may look similar for familiarity, it is designed to be more adaptable and is the first in a suite of tools aiming to meet diverse liquidity needs.