2:02 PM

Prop AMMs: Conduits for OnChain Market Makers

Arcana

Over the last ~6 months, a handful of relatively unknown AMMs have quietly captured an overwhelming share of trading volume on Solana. SolFi, ZeroFi, and Obric now account for over 57% of total trading volume on Jupiter.

However, unlike the standard design, these AMMs are proprietary, closed-off liquidity venues built specifically to serve aggregators and professional flow – hence why they’re dubbed “prop AMMs”. And their rise likely reflects a shift in Solana’s market structure. A one where high throughput, near-zero fees, and composable orde

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So is this a good or a bad thing for Solana long term?

I don't necessarily think it affects Solana directly in that way. It just means that the market structure is becoming more efficient. However, if you're following recent updates going on with Jito's BAM, this is the direction they're trying to push for: private txns, maker priority, and the ability for CLOBs to quote tighter spreads.

The market structure on Solana is inherently moving towards whatever direction is more efficient. Think prop AMMs are just front running this in the meantime