Solana's token launch scene is dominated by two platforms: Pump.fun and Raydium's LaunchLab. Both let anyone create and launch a token in minutes, but they work differently under the hood — and those differences matter whether you're a token creator or a trader.
Pump.fun pioneered the bonding curve launchpad model and still handles the majority of Solana token launches. Raydium's LaunchLab launched as a direct competitor, leveraging Raydium's existing DEX infrastructure and liquidity ecosystem.
This guide compares both platforms across every dimension that matters: mechanics, fees, liquidity, trading experience, and which is better for different use cases.
How Pump.fun Works
Pump.fun uses a bonding curve model for token launches. There's no presale, no team allocation, and no traditional liquidity pool at launch. Instead, the token price is determined by a mathematical curve.
The Launch Process
- Creator deploys a token: Set a name, ticker, image, and description. No coding required. Cost is minimal (just SOL transaction fees)
- Bonding curve phase: The token is immediately tradeable on Pump.fun. Buyers purchase tokens from the bonding curve, which algorithmically increases the price as more SOL flows in
- Graduation: When the bonding curve reaches approximately 85 SOL in market cap (~$12,000-15,000 depending on SOL price), the token "graduates"
- Liquidity migration: Upon graduation, Pump.fun creates a liquidity pool on Raydium (or optionally Meteora) with the accumulated SOL and remaining tokens. The LP tokens are burned, making liquidity permanent
Bonding Curve Mechanics
The bonding curve starts the token at a very low price and increases it exponentially as buyers enter. Early buyers get the cheapest price; late buyers pay more. This creates natural price discovery without needing a traditional order book or LP.
Key characteristics:
- No initial liquidity needed: The bonding curve acts as the market maker
- Guaranteed liquidity: You can always sell back to the curve (at a lower price due to the curve shape)
- Fair launch: No presale, no insider allocations (though creators can buy their own token immediately)
- Small market cap at graduation: Tokens graduate at a relatively low MC, meaning the "real" price discovery happens after migration to a DEX
Pump.fun Fees
| Fee | Amount |
|---|
| Token creation | ~0.02 SOL |
| Trading fee (bonding curve) | 1% per trade |
| Migration fee | 1.5 SOL (taken from bonding curve proceeds) |
How Raydium LaunchLab Works
Raydium's LaunchLab is a direct competitor to Pump.fun, built into Raydium's DEX ecosystem. It uses a similar bonding curve model but with key differences in fee structure and liquidity handling.
The Launch Process
- Creator deploys a token: Similar to Pump.fun — name, ticker, image, description. Minimal cost
- Bonding curve phase: Token trades on LaunchLab's bonding curve with the same general mechanics
- Graduation: Token reaches the graduation threshold and migrates
- Liquidity migration: Token migrates directly to a Raydium CPMM (Constant Product Market Maker) pool. Since LaunchLab is built by Raydium, this integration is native and seamless
LaunchLab Differences
Fee structure: LaunchLab was designed to undercut Pump.fun on fees, particularly the migration fee.
Raydium integration: Tokens that graduate from LaunchLab are immediately tradeable on Raydium with deep DEX infrastructure. Jupiter and other aggregators pick up the pool automatically.
Customizable curves: LaunchLab offers more flexibility in bonding curve parameters, letting creators adjust graduation thresholds and curve shapes.
LaunchLab Fees
| Fee | Amount |
|---|
| Token creation | ~0.02 SOL |
| Trading fee (bonding curve) | 1% per trade |
| Migration fee | Lower than Pump.fun |
Head-to-Head Comparison
| Feature | Pump.fun | Raydium LaunchLab |
|---|
| Market share | Dominant (majority of launches) | Growing challenger |
| Trading fee | 1% | 1% |
| Migration destination | Raydium or Meteora (creator choice) | Raydium CPMM (native) |
| Graduation threshold | ~85 SOL | Configurable |
| Token creation cost | ~0.02 SOL | ~0.02 SOL |
| LP after graduation | Burned (permanent) | Burned (permanent) |
| Bot/sniper support | Widely supported by all major bots | Supported by major bots |
| Trading UI | Pump.fun website | Raydium website |
| Volume/attention | Higher (established brand) | Lower but growing |
| Creator tools | Basic (name, image, description) | Basic + curve customization |
After graduation, tokens from both platforms trade on standard Solana DEXes. Jupiter aggregates pools from Raydium, Meteora, and others, so you'll find graduated tokens regardless of which launchpad they came from.
For Solana's ecosystem, having two strong launchpads is healthier than depending on one. Whether Pump.fun maintains its lead or LaunchLab catches up, traders and creators benefit from the competition.
