Let’s dive into a hot topic in the crypto space that’s been making waves on X. On March 21, 2025, Eric Pramono (@epramono) dropped a tweet that’s got the DeFi community buzzing. He pointed out a critical flaw in PumpSwap’s design and suggested that this could be a golden opportunity for platforms like MeteoraAG and met_lparmy to step in and dominate trading volume on Solana. Let’s break it down and see what’s going on.

What’s PumpSwap and Why Does It Matter?

PumpSwap is a new decentralized exchange (DEX) launched by Pump.fun, a popular token launchpad on Solana. Announced on March 20, 2025, PumpSwap aims to streamline the trading of Pump.fun coins by allowing tokens to migrate directly to its platform after completing their bonding curve—a process where a token’s price increases as more people buy in, until it hits a set market cap. Previously, these tokens would move to Raydium, a major DEX on Solana, for trading. But PumpSwap changes the game by cutting out Raydium, offering instant migrations, zero fees (down from 6 SOL), and promising deeper liquidity.

Sounds great, right? Well, not so fast. Eric Pramono’s tweet highlights a significant issue with PumpSwap’s design that could hinder its success—and create an opening for competitors.

Eric Pramono’s Critique: Liquidity Woes with PumpSwap’s CPMM

In his tweet, Pramono focuses on PumpSwap’s Constant Product Market Maker (CPMM) design, which is similar to what Raydium V4 and Uniswap V2 use. A CPMM is a type of automated market maker (AMM) that ensures liquidity by maintaining a mathematical balance between two tokens in a pool, allowing users to trade without needing a traditional buyer or seller. However, Pramono points out a key limitation: PumpSwap’s CPMM doesn’t allow liquidity providers (LPs) to add to existing pools.

Why is this a problem? When new Pump.fun coins hit high market caps, they need deep liquidity—basically, a large pool of tokens available for trading—to handle big trades without causing massive price swings (also known as slippage). If LPs can’t add more liquidity to an existing pool, the pool stays shallow, making it harder for these coins to support high trading volumes. This could discourage traders and stunt the growth of promising projects.

The Raydium Lockout: A Shift in the Market

Adding fuel to the fire, PumpSwap’s launch means Raydium is now locked out of hosting new Pump.fun coins. Historically, once a Pump.fun coin completed its bonding curve (reaching a market cap of $69k), $12k of liquidity would be deposited into Raydium, as explained in a Solana Stack Exchange post. Raydium’s deeper liquidity pools and higher trading activity made it a natural fit for these tokens. But with PumpSwap taking over, Raydium is out of the picture for new launches, leaving a gap in the market.

This shift is a double-edged sword. On one hand, PumpSwap’s zero-fee migrations and instant transfers are a win for creators and traders. On the other hand, the liquidity issue Pramono highlights could make PumpSwap less attractive for high market cap coins, potentially driving volume elsewhere.

MeteoraAG and met_lparmy: Ready to Seize the Opportunity?

This is where MeteoraAG and met_lparmy come in. Pramono suggests that these platforms could capture the trading volume PumpSwap might lose by offering deeper total value locked (TVL)—a measure of the total assets staked in a protocol’s liquidity pools. More TVL means more liquidity, which translates to better trading conditions, especially for high market cap coins.

MeteoraAG, in particular, is well-positioned to take advantage of this. According to their docs, Meteora is focused on building a sustainable liquidity layer on Solana. They’re exploring Concentrated Liquidity Market Maker (CLMM) pools, which allow LPs to concentrate their liquidity in specific price ranges, reducing slippage and improving price discovery for traders. Unlike PumpSwap’s CPMM, Meteora’s approach could provide the flexibility and depth needed to support Pump.fun coins as they scale.

Meteora also offers Dynamic Liquidity Market Maker (DLMM) pools, which let LPs earn dynamic fees based on market volatility, and multi-token stable pools to diversify holdings. These features could make Meteora a more attractive option for LPs and traders looking for a robust trading environment.

Community Reactions: Confusion and Opportunities

The X thread sparked some interesting reactions. One user, @Ser_kuka_sol, replied to Pramono, pointing out that PumpSwap’s announcement explicitly mentions the ability to “add to existing liquidity pools.” This contradiction suggests there might be some confusion—or perhaps a disconnect between PumpSwap’s stated features and its actual functionality. If LPs can’t add liquidity as Pramono claims, this could be a design flaw that PumpSwap needs to address quickly.

Other replies, like those from @dorothy1675916 and @elizabe69547011, veered off-topic, mentioning a research report from UndergroundAlerts that allegedly led to 300-400% gains. While these comments don’t directly address Pramono’s point, they highlight the fast-moving, opportunity-driven nature of the crypto space—where platforms like MeteoraAG could indeed capitalize on PumpSwap’s shortcomings.

What’s Next for PumpSwap and Solana’s DeFi Ecosystem?

PumpSwap’s launch comes at a time when Pump.fun is facing a 60% revenue drop over the past 30 days, as reported by CryptoSlate. The DEX is a bold move to regain momentum, with features like creator revenue sharing (coming soon) and partnerships with big names like Pudgy Penguins ($PENGU), Aptos ($APT), and Tron ($TRON). They’ve also prioritized security, completing nine audits and planning a $2M auditing competition with Cantina.

But if Pramono’s critique holds true, PumpSwap’s liquidity issues could undermine its goals. For now, platforms like MeteoraAG have a chance to step up, offering deeper liquidity and better trading conditions for Pump.fun coins. This could reshape the competitive landscape on Solana, especially as more projects and traders look for reliable DEXs to support their growth.

Final Thoughts

Eric Pramono’s tweet shines a spotlight on a critical challenge for PumpSwap: its CPMM design may not provide the liquidity depth needed for high market cap Pump.fun coins. With Raydium out of the picture, this opens the door for MeteoraAG and met_lparmy to capture trading volume by leveraging their strengths in sustainable liquidity solutions. As Solana’s DeFi ecosystem continues to evolve, it’ll be fascinating to see how PumpSwap responds—and whether MeteoraAG can seize this opportunity to become a dominant player in the space. What do you think? Will PumpSwap fix its liquidity issues, or will MeteoraAG take the lead? Let’s keep the conversation going!