Compared with Pump.fun

Pump.fun is currently the most popular Memecoin Launch protocol. Its core design is the bonding curve. Meanwhile, many other protocols have forked this design, and protocols with such a design account for the vast majority of the current market share. Therefore, we will compare the differences between Memeverse and Pump.fun to see what advantages Memeverse has and what problems it solves.

1. Creator Revenue Sources

   • Pump.fun: Pump.fun offers a frontrunning feature that allows creators to purchase tokens at the time of deployment, guaranteeing them tokens at costs lower than anyone else. However, this insider trading mechanism severely undermines market fairness, deviating from the original intent of FairLaunch. Furthermore, Pump.fun's model has been widely exploited by scammers and rug-pull bots, using fake transactions and market sentiment manipulation to drain wealth from retail investors.

   • Memeverse: Memeverse does not provide any insider trading functionality. For token creators, revenue comes from the UPT portion of the liquidity pool's market-making profits during the lock-up period (the Memecoin portion belongs to the Memecoin revenue treasury). Creators cannot obtain tokens for free in any way. Memeverse emphasizes the long-term sustainable development of Memecoins rather than facilitating fraud. This mechanism offers a more stable income stream for long-term Memecoin communities (e.g., those focused on charity, social, or DeSci initiatives). The creators' earnings are proportional to the community's activity level.

2. Token Liquidity

   • Pump.fun: Memecoins launched on Pump.fun go through two stages: the Bonding Curve stage and the DEX Listing stage. During the Bonding Curve stage, users purchase tokens at varying costs until the funds reach a specific initial liquidity threshold. Due to the presence of frontrunning mechanisms, there is significant rug-pull risk during this phase. Only 1.4% of tokens successfully progress to the listing stage. Even for tokens that reach the listing stage, the number of tokens in the initial liquidity pool accounts for only 1/5 of the circulating supply, resulting in severe liquidity shortages. Most tokens crash to zero immediately after listing. Even tokens with a market cap in the tens of millions of dollars may have DEX liquidity of only a few hundred thousand dollars. Selling just 1% of the circulating tokens can cause a 60% price drop, making the risk of a price collapse extremely high.

   • Memeverse: In the genesis phase, all participants incur the same cost, and no frontrunning mechanisms are present. Initial liquidity must meet a minimum threshold (with refunds issued if not met), but there is no upper limit, allowing market demand to determine the final liquidity. This liquidity is typically ten to hundreds of times greater than Pump.fun. Additionally, the design of POL ensures that no one holds tokens prematurely before DEX listing, as all Memecoins are added to the liquidity pool.

3. Token Acquisition Cost

   • Pump.fun: The funds raised during the Bonding Curve stage are permanently locked in the DEX, and users purchase Memecoins at fluctuating prices, resulting in uneven pricing.

   • Memeverse: The funds raised during the genesis phase are split into two parts: one allocated to the Memecoin liquidity pool and the other to the POL liquidity pool. The POL portion is permanently locked, while the Memecoin liquidity can be unlocked during the liquidity unlock phase by burning POL. This design reduces the cost of holding for users, encourages long-term holding, and strengthens the token ecosystem.

4. Risk Control

   • Pump.fun: No risk control or protective measures are provided. All participants are in a raw PVP state, exposed to various risks such as insider trading, rug pulls, and fraudulent transactions. According to past statistics, only 3% of users achieved profits exceeding $1,000.

   • Memeverse: As a true FairLaunch platform, all genesis users share the same participation cost. Thanks to the POL design, even genesis users cannot directly access tokens before their listing, ensuring that all users, whether genesis participants or others, start on an equal footing. This fundamentally eliminates the risk of insider trading. Depending on their risk preferences, low-risk users can choose to participate in the genesis phase (where risks are predictable), while high-risk users can opt to purchase tokens upon listing.

5. Protocol Composability

   • Pump.fun: Only offers token issuance functionality, with no further protocol composability.

   • Memeverse: Introduces the concept of Memecoin Staking for the first time, integrating Memecoins with DeFi and creating new composability opportunities. Each Memecoin has a corresponding ERC4626 vault, with its earnings primarily derived from the Memecoin portion of the market-making profits generated by the locked liquidity. Additionally, communities can develop new use cases to bring extra revenue streams to the Memecoin vault. This reduces the opportunity cost for holders and enhances the appeal of long-term token holding for Memecoin communities.

6. Protocol Revenue Sources

   • Pump.fun: The protocol's revenue mainly comes from transaction fees during the Bonding Curve stage. After listing, it no longer generates revenue and even charge a one-time listing fee. The longer a token stays in the Bonding Curve stage, the higher the protocol's revenue. However, from the user's perspective, users prefer to quickly move past the Bonding Curve stage and complete the listing. This misalignment between product design and user interests hinders long-term sustainability and is one of the reasons for the low token listing rate. From this perspective, Pump.fun has not considered creating a win-win situation with users.

   • Memeverse: The protocol's revenue comes from the market-making profits of the liquidity provided by the locked POL trading pair (the POL portion), but this is only part of it. Memeverse primarily serves as a traffic entry point, providing more transactions and liquidity for OutSwap, thereby increasing OutSwap's revenue. Therefore, the protocol's income is closely linked to the growth of the Memecoin community and is more sustainable.