Pump.fun Launches Lending Platform for Buying Memecoins and NFTs

Pump.fun is set to launch a lending platform that will allow users to purchase memecoins and non-fungible tokens (NFTs) using borrowed cryptocurrency, as announced by the Solana-based memecoin launchpad. The onchain lending protocol, named Pump.Fi, offers immediate financing for any digital asset, with borrowers required to pay one-third upfront and the remainder over a 60-day period. Pump.Fi will also establish a marketplace for lenders to acquire debt, although it is unclear how the protocol, which does not conduct credit checks, plans to ensure repayment of undercollateralized onchain loans. This move by Pump.fun comes amidst a competitive market, with the platform facing a decline in memecoin trading activity on Solana following various scandals, prompting the introduction of onchain lending to attract more liquidity into the market. Additionally, Pump.fun has expanded its offerings to stay ahead of competitors like Raydium, Daos.fun, GoFundMeme, and Pumpkin, all vying for a portion of Solana's memecoin market share.