Proprietary Solana Market Makers Lowered Trade Costs
Investors trading SOL/USDC saw reduced execution costs on proprietary platforms compared to conventional pools.
Updated on Oct. 2, 2026 in Investing
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Between September 1, 2025, and August 31, 2026, research showed that proprietary automated market makers (AMMs) on the Solana blockchain offered lower execution costs than conventional versions for quiet trades. This analysis suggests distinct differences in how these two trading structures manage price updates and liquidity.
Why it matters
Conventional AMMs often face arbitrage risk because they update prices only through trade activity, whereas proprietary systems update prices independently of individual trades. Understanding these mechanisms helps investors identify which platforms might offer more stable pricing during routine market conditions.
Proprietary AMMs on Solana achieved execution costs of 0.26 basis points compared to 2.59 basis points for conventional AMMs during the study period. Daily trading volume for these proprietary platforms averaged $1.12 billion, far exceeding the $292 million average for conventional pools.
The players
Solana
A blockchain network that hosts decentralized finance applications and supports various digital asset trading protocols.
The details
Proprietary AMM operators update asset prices proactively, minimizing the window of exposure that occurs when external market prices shift before a pool updates. In contrast, conventional AMMs rely on incoming trade activity to adjust their internal pricing, which can expose liquidity providers and traders to arbitrageurs. The study noted that proprietary AMMs realized a +0.37 basis point markout over two seconds, while conventional AMMs saw a -0.22 basis point markout.
Timeline
Sept. 1, 2025 – Aug. 31, 2026: Sample period for volume and execution cost observations.
Sept. 29, 2026: Submission date of the research preprint.
Oct. 2, 2026: Publication date of the report.
Money Landscape
This study highlights the ongoing shift in decentralized finance toward more efficient liquidity management structures. It marks a departure from earlier passive pricing models that have dominated blockchain trading environments.
Investors active in the Solana ecosystem should monitor the type of liquidity provider they utilize, as the choice between proprietary and conventional platforms can impact the effective cost of a trade. Consult with a qualified financial professional to assess how specific trading protocols align with your overall risk and cost-management strategy.
The takeaway
Proactive pricing models may offer significant cost savings for high-volume traders compared to traditional reactive models. Investors should verify the specific liquidity protocols used by their platforms to understand the potential for better execution pricing.
Further reading
Learn more about the fundamentals of digital asset trading and platform selection in our Investing section.
Source note: This article includes information reported by TokenPost.
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