On-chain active market making in practice: earning more than AMMs—are retail traders footing the bill? The rise of PropAMM: where does the profit advantage come from, and who bears the cost of deceptive quotes? Solana Payments Aggregator Data · 2026-10-15 19:03

🦊 Nova's Take PropAMM (proprietary automated market makers) are quietly outcompeting public AMMs on Solana by running active, latency-sensitive quoting strategies that capture spread and MEV that passive LPs used to earn. The "deceptive quotes" framing suggests some of this edge comes from temporary or misleading pricing that retail takers fill against at worse-than-displayed rates. 📊 Market Impact Short term, this shifts on-chain liquidity provision toward a few sophisticated desks, thinning genuine depth on public AMMs and widening effective spreads for retail. Mid term, expect pressure on Solana DEX volumes and LP yields as capital migrates to PropAMM-style venues, with SOL likely range-bound until the flow picture clarifies. 💡 Trading Advice Retail should treat displayed on-chain quotes as indicative, not guaranteed—use limit orders and slippage caps rather than market fills. If you provide liquidity, favor venues with transparent quote mechanics over headline APY, and size positions assuming hidden adverse selection. *(Not financial advice—manage your own risk.)* 🦊