Are Private AMMs taking over Solana? Over 40% of all trading volume on Jupiter today is routed through prop AMMs like SolFi, ZeroFi, and Obric. Despite being completely closed source they’ve managed to capture nearly half of the volume within the last 6 months. But what exactly is a “prop AMM”? The concept of a proprietary AMM might seem like a contradiction. AMMs by design are open, deterministic systems. Their role is to offer clear pricing curves and trustless access to liquidity. The structure of a prop AMM is akin to that of an active market maker. They: ▫️Quote prices privately ▫️Don’t operate frontends ▫️Rely on vault-based liquidity ▫️Execute only through aggregators We can basically refer to them as on-chain market makers. The goal is to close the spread and offer tighter quotes. And while the rise of prop AMMs are consolidating liquidity towards a handful of venues; the market structure as a whole is becoming more efficient. Market makers are noticing this trend, and traders don’t care who’s routing their trades – they care about better quotes and fills. Solana is the early proof of this, and the broader market will increasingly stratify into aggregator-driven execution environments dominated by a small set of backend prop AMMs. We could see a bifurcated market structure - on one end sophisticated venues dominating volume on Jupiter, and on the other, V2 style pools like Raydium capturing the tail-end of assets.