Pi Network Introduces Pi DEX, AMM Liquidity Pools, and Token Creation Features on the Pi Testnet

Amid the ongoing Decentralized Exchange (DEX) hype, Pi Network has integrated a DEX, Automated Market Maker (AMM) liquidity pools, and token creation features. However, these key integrations are available on its Testnet blockchain, as announced by founder Dr. Chengdiao Fan at the TOKEN2049 conference in Singapore. 

These additions allow developers and users to test token swaps, liquidity provision, and other Decentralized Finance (DeFi) mechanics using Test-Pi, the network's test currency. The rollout follows the conclusion of the .pi domains auction on September 30, 2025.

DeFi Features on Testnet

The features were introduced during Dr. Fan's keynote at TOKEN2049, where she outlined the deployment on the Testnet for initial testing. 

"As Pi Founder Dr. Chengdiao Fan announced live on stage at TOKEN2049, Pi Network has just deployed a suite of new features to its blockchains. These features are initially being rolled out only on Testnet for testing purposes. After the testing period, they will be accessible on Mainnet," the Pi Network blog read. 

This phased approach restricts the tools to the Testnet environment for now, using Test-Pi and test tokens that hold no value outside of testing. On the Mainnet, these functions remain unavailable until testing concludes, but the Pi Wallet interface displays the options and directs users to the Testnet.

The Pi DEX and AMM components operate at the protocol level of the Pi blockchain, enabling token swaps and managing liquidity pools. Developers can build custom interfaces for these features, allowing users to experiment with adding or removing liquidity and observe market mechanics. The Testnet setup provides a controlled space for projects to verify DeFi interactions before any potential Mainnet integration. 

This includes handling token pairs, calculating swap rates based on constant product formulas typical in AMM designs, and managing pool fees; however, specific parameters such as fee percentages have not been detailed in the announcement.

Token creation complements the DEX and AMM by enabling developers to mint new tokens on the Testnet at no cost. Documentation for this process is expected to be available in the coming weeks. On the Mainnet, token creation will include rules to promote utility-focused designs, such as requiring reasonable token supply and distribution plans. These guidelines aim to align incentives toward building applications and services rather than speculative ventures. Dr. Fan emphasized this during her speech, noting the need to differentiate from memecoins, which often lack underlying utility and rely on community hype for value.

Integration with Existing Pi Infrastructure

These new features build on Pi Network's established components, including the Pi Wallet for managing assets, the Pi Ad Network for monetization, and staking mechanisms in the Ecosystem Directory for app discovery. The network's know-your-customer (KYC) verification process ensures token distributions reach authenticated users, supporting fair allocation. With a user base exceeding 50 million verified members, developers gain access to a large audience for testing token integrations in real-world scenarios, such as in-app payments or community rewards.

The .pi domains auction, which ended on September 30, 2025, raised funds to support ecosystem development, including these DeFi tools. Proceeds from the auction may be used to fund further infrastructure enhancements. This event marks another milestone in Pi's progression, following previous achievements, including the launch of the mobile mining app, Open Mainnet, Pi App Studio, and wallet integrations.

Educational and Practical Aspects of the Testnet Phase

The Testnet deployment serves an educational purpose, allowing pioneers to learn DeFi concepts hands-on. Activities include simulating token swaps, where users exchange Test-Pi for test tokens at rates determined by liquidity pool balances. Liquidity providers can add assets to pools, earning proportional shares and potential fees from trades. These mechanics mirror standard DeFi protocols, such as those on Uniswap, but are tailored to Pi's blockchain architecture.

By restricting Mainnet access, the network minimizes risks associated with untested features. Test tokens and Test-Pi cannot be transferred to the Mainnet or used for real transactions, ensuring the phase focuses on refinement. This approach aims to boost financial literacy among users before full DeFi activation, potentially reducing errors in live environments. Developers can test integrations with Pi's app studio, which supports AI-powered app creation, allowing non-technical users to experiment with token-based functionalities such as governance or incentives.

The emphasis on utility over speculation is evident in the Mainnet rules. Tokens must demonstrate a clear connection to applications or services, such as powering in-app economies or facilitating cross-app interactions. This contrasts with memecoins, which Dr. Fan described as demonstrating community participation but often failing in sustainability due to the absence of utility. Pi's model seeks to attach tokenomics to tangible use cases, including system-level services that enhance network decentralization.

Conclusion

Pi Network's introduction of DEX, AMM liquidity pools, and token creation on the Testnet represents a measured expansion of its blockchain capabilities, integrating with existing tools like the Pi Wallet and KYC system to support developer testing and user education. These features enable precise experimentation with token swaps, liquidity management, and DeFi mechanics using Test-Pi, while Mainnet rules will enforce utility-driven designs to differentiate from speculative memecoins. 

The rollout, announced at TOKEN2049 and following the .pi domains auction, underscores the project's commitment to a decentralized economy. For users and developers, this phase provides practical tools for building and learning, with a focus on technical integration rather than rapid scaling. Interested users should monitor upcoming documentation and testing outcomes to assess readiness for Mainnet deployment. 

Sources:

• Pi Network Blog: https://minepi.com/blog/dex-amm-token-creation/ 
• Pi Core Team on X: https://x.com/PiCoreTeam/status/1973535441673658875