The Solana Foundation has unveiled PropAMMs, a new proprietary automated market maker (AMM) designed to bridge the efficiency gap between decentralized exchanges (DEX) and centralized exchanges (CEX). PropAMMs utilize a hybrid model combining off-chain predictive pricing with on-chain minimal data submission. This allows the contract to dynamically act as a market maker, providing real-time quotes based on market fluctuations, counterparty information, and aggregator sources. The system aims to reduce the costs associated with frequent price adjustments while enhancing capital efficiency for passive liquidity providers and smart active market making.
According to the Solana Foundation, PropAMMs can achieve nearly 99% of CEX trading efficiency at a lower cost, marking a significant step towards "hybrid liquidity" in Solana's DeFi ecosystem.
Solana Foundation Introduces PropAMMs for Enhanced DeFi Liquidity
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