Pump.fun is launching a lending platform to enable users to buy memecoins and non-fungible tokens (NFTs) with borrowed cryptocurrency, the Solana-based memecoin launchpad said.
Dubbed Pump.Fi, the onchain lending protocol provides “immediate… financing for [any] digital asset,” Pump.fun said in an April 1 X post.
According to Pump.fun, borrowers pay one-third up front and the rest over 60 days. In addition, Pump.Fi will create a marketplace for lenders to buy debt. The protocol did not specify how Pump.Fi — which doesn’t do credit checks — plans to ensure repayment of undercollateralized onchain loans.
Pump.Fi will let users borrow to buy memecoins. Source: Pump.fun
Related: Pump.fun launches own DEX, drops Raydium
Competitive market
Pump.fun has been grappling with a sharp drawdown in memecoin trading activity on Solana after several high-profile scandals — such as the LIBRA