The rise of automated market makers (AMMs) in decentralized finance (DeFi) has transformed liquidity provision, allowing users to trade in a permissionless environment without the need for traditional market makers. However, this innovation is not without challenges such as susceptibility to miner extractable value (MEV) attacks, which negatively impact user experience. Recently, a new wave of proprietary AMMs (prop AMMs) on Solana has emerged to address these issues. Unlike regular AMMs, prop AMMs like HumidFi and SolFi operate without public frontends, centralizing liquidity through unique market makers that offer better protection against MEV attacks. These AMMs connect to DEX aggregators like Jupiter and Titan for optimal price execution, enabling them to capture substantial trading volumes. Data indicates that since January 2025, prop AMMs accounted for 13% to 24% of monthly DEX volumes, with prop AMMs handling approximately 53% of SOL-stablecoin transactions last week. This trend suggests that while traditional AMMs will continue to facilitate long-tail assets and speculation, prop AMMs will dominate more liquid markets, leading to greater efficiency in the trading ecosystem on Solana.

Source 🔗