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Active, Real-Time & Programmable Liquidity

A PropAMM (Proprietary Automated Market Maker) is an automated market maker where professional market makers deploy programmable trading strategies directly onchain. Unlike traditional AMMs, which rely on passive liquidity curves, PropAMMs continuously update pricing, liquidity, and inventory in real time based on changing market conditions. Instead of static liquidity, liquidity becomes programmable. Professional market makers can dynamically adjust their quotes based on:
  • Inventory
  • Market volatility
  • External prices
  • Toxic order flow
  • Proprietary risk models
This allows them to quote tighter spreads while managing risk more efficiently.

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Why is it important?

The quality of a market is determined by the quality of its liquidity. PropAMMs allow professional market makers to continuously adapt their quotes to changing market conditions instead of relying on static liquidity curves. As a result, users benefit from:
  • Better prices
  • Tighter spreads
  • Deeper liquidity
  • Higher capital efficiency
In traditional AMMs, market makers must quote conservatively because stale liquidity can be exploited. To compensate for this risk, they widen spreads and reduce the amount of liquidity they’re willing to provide. PropAMMs fundamentally change this dynamic. Because liquidity is continuously updated based on inventory, volatility, external prices, and risk models, market makers can manage risk in real time instead of relying on wide safety margins. This allows them to quote significantly tighter prices while maintaining deep liquidity. Over the past year, PropAMMs have quietly become a dominant source of liquidity on Solana. Many of the best quotes now come from PropAMMs, which is why aggregators increasingly route order flow to them. As onchain markets continue to mature, PropAMMs represent the next evolution of DEX market structure, bringing professional market making and best execution onchain.