PropAMMs Offer Lower Trade Costs on Solana While Public Pool Returns Decline
- Professional operator-controlled propAMMs had an execution cost proxy of 0.26 basis points compared to 2.59 for public AMMs.
- The study analyzed SOL/USDC fills from Sept. 1, 2025, to Aug. 31, 2026.
- Gross maker markouts were reported at +0.37 basis points for propAMMs and -0.22 for public AMMs.
- Arbitrageurs help correct stale prices in pools, impacting liquidity and pricing dynamics.
- Execution on Tessera averaged 1.08 basis points worse by trade than previous-block-end quotes.
The analysis highlights the efficiency of propAMMs in providing better swap prices for traders, while passive liquidity providers face challenges due to stale quotes and market movements.
Overall, the findings indicate that lower costs do not guarantee reliable quotes or positive returns for liquidity providers, as evidenced by the stark difference in execution costs between propAMMs and public AMMs.(Source)
