Gate Research: Prop AMM Revamp Solana liquidity

Gate Research has released its latest report, “Prop AMM Revamp Solana Liquidity,” examining the rapid rise of Prop AMMs within the Solana ecosystem and how they are reshaping the structure of the Solana DEX market. The report finds that Prop AMMs now account for 20%–40% of weekly trading volume on Solana DEXs, and command over 80% of volume in core SOL–stablecoin pairs, effectively establishing themselves as the network’s de facto best-execution layer.

By combining an “Oracle + Solver” hybrid pricing model with on-chain atomic execution, Prop AMMs are able to deliver near-CEX-level execution with minimal slippage, while transforming the traditional AMM risk of impermanent loss into a manageable form of inventory risk. Their profit model is primarily driven by bid-ask spreads and follows a professional market-making framework: total spread captured minus inventory value fluctuations and operating costs.

The report notes that while Prop AMMs significantly enhance trading experience and capital efficiency, they may also divert volume and fee revenue away from public liquidity pools, raising concerns around centralization and reduced composability. Gate Research believes the rise of Prop AMMs signals Solana’s accelerating transition toward an “on-chain CEX” model. Looking ahead, this shift is expected to pressure traditional DEXs to innovate, while further concentrating trading activity around aggregators.

Key Takeaways

• Market share: Prop AMMs account for 20%–40% of weekly Solana DEX volume and over 80% of SOL–stablecoin trading;
• Mechanism innovation: Oracle + Solver hybrid pricing, with off-chain computation and on-chain atomic execution;
• Risk paradigm shift: Impermanent loss → manageable inventory risk, with JIT liquidity strengthening MEV defenses;
• Competitive landscape: HumidiFi and Tessera V have established clear leadership, with growing market differentiation;
• Ecosystem impact: Structural trade-offs between efficiency gains and increased centralization and erosion of public liquidity;
• Outlook: As Solana evolves toward an on-chain CEX, Prop AMMs will play a central role, and user reliance on aggregators is set to continue rising.

Discover more details → Gate Research: Prop AMM Revamp Solana liquidity

Gate Research is a comprehensive blockchain and cryptocurrency research platform that provides deep content for readers, including technical analysis, market insights, industry research, trend forecasting, and macroeconomic policy analysis.

Disclaimer

Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such decisions.

Gate Team
December 18, 2025

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