PropAMMs: Ethereum vs Solana

PropAMMs were created and are popular on Solana and emerging on Ethereum. Let’s take a snapshot of where things stand, but first: what is a propAMM (Proprietary Automated Market Maker)? A PropAMM is an onchain trading system where a protocol uses an offchain pricing engine and oracle feeds to actively reprice its liquidity. Unlike traditional AMMs that rely on fixed mathematical curves and passive user-funded pools, propAMMs function like active, private market makers. 

If they’re actively repriced and use private market makers, then why are they called AMMs? No clue, but PropAMM volume share on Ethereum has reached ~14% (peaked at 22% for one day in August).

Compared to their ~36% volume share on Solana, Ethereum PropAMMs are actually not that far off. However, in absolute terms, Solana PropAMMs record $5 billion+ in weekly volume vs. the $500 million seen on Ethereum. That’s a ~10x difference. 

Another material difference is the dominant asset pairs being traded. On Ethereum, ~60 to 70% of PropAMM volume stems from stablecoin pairs vs 6 to 12% on Solana. Ethereum is home to over 100 stablecoins worth over $140 billion (vs ~50 worth $17 billion on Solana).

Despite that order of magnitude more supply, Solana still handles double the monthly stablecoin volume (albeit the gap is closing).

For native asset pairs (SOL and ETH), the story is different. Nearly 70% of PropAMM volume on Solana stems from SOL/USDC vs 25% for ETH/stablecoin on Ethereum.

On Ethereum, Fermiswap is the dominant PropAMM with ~60% volume share (though Metric is regaining lost ground).

Solana’s environment is more competitive, though BisonFi still leads with ~40% , while Tessera ranks second with ~20%.

So where does that leave things? 

On execution, propAMMs are already earning their flow. The median propAMM fill on ETH, SOL and BTC pairs landed at or just inside the onchain midpoint, while the median AMM fill paid 1-2 bps more. That gap widens for trades above $100K. On USDT/USDC, the difference was a rounding error on both chains. Ethereum propAMMs are winning flow where spreads were already tight, and are underweight where their edge is largest.

If Fermiswap and Metric can pull ETH/stablecoin flow away from Uniswap and Fluid, the 10x gap to Solana has room to close.

— Marc

Grayscale says Bitcoin's volatility has dropped to 43%, from 81% five years ago, and is now lower than that of 19% of S&P 500 stocks.

In under a month, Aptos tokenholders repriced gas 10x, halved staking rewards, capped supply at 2.1B APT and permanently locked 210M tokens, cutting net supply growth ~70%.

Transactions doubled anyway, and the gas burn now offsets ~10% of issuance, up from 0.2%.

Read the full report from Blockworks Research to see what it would take for APT to turn deflationary.