The Rise of Proprietary Automated Market Makers in DeFi Trading
- Proprietary automated market makers (propAMMs) account for approximately 15% to 27% of daily on-chain decentralized exchange (DEX) volume.
- For SOL-to-stablecoin trades routed through Jupiter, propAMMs represent over 90% of the market share.
- Research indicates that propAMMs contribute up to 27% of weekly on-chain spot volume.
- Jump Crypto’s analysis shows that 91.9% of SOL-USDC fills via propAMMs were cheaper than the lowest centralized exchange fee tier.
- Traditional finance entities like Nasdaq and the London Stock Exchange are exploring tokenized equities on blockchain platforms.
The emergence of propAMMs signifies a shift in DeFi, where professional market makers are regaining prominence by providing better execution prices compared to traditional public pools. This evolution is occurring alongside efforts from major financial institutions to integrate traditional assets with blockchain technology.
As a result, the trading landscape is changing, with over 90% of certain trades being routed through professional liquidity providers rather than public pools, highlighting the growing influence of these entities in DeFi markets.
