News
Public · Published
PropAMMs lower Solana trade costs, and public pool returns crash
A September preprint reports that professional automated market makers, which are trading pools run by professionals, give cheaper SOL/USDC execution in quiet markets, while passive depositor returns need separate accounting.
Published:
Updated:
What happened
A September preprint reports that professional automated market makers, which are trading pools run by professionals, give cheaper SOL/USDC execution in quiet markets, while passive depositor returns need separate accounting.
Confirmed
Global impact / market context
Cheaper execution can pull more SOL/USDC trading into professional pools, which may lower costs for traders but leave passive depositors earning less, forcing them to weigh returns and risks before depositing cash.
Analyst inference
If passive returns crash while trading costs fall, money may shift toward professional pool operators and away from casual depositors, changing who provides cash and how Solana trading activity is priced.
Analyst inference
What to watch
- Watch whether the September preprint receives follow-up research or peer review, since its SOL/USDC findings remain a single study rather than settled market evidence. Confirmed
- Watch whether professional pool operators propose new fee structures or depositor terms to address the reported gap between cheaper trades and falling passive returns. Proposed
- Watch Solana trading volume and depositor cash flows for signs that cheaper professional execution is pulling activity away from passive pools and changing who supplies capital. Analyst inference
Affected assets
- JUP — Jupiter
- USDT — Tether
- SOL — Solana
- ETH — Ethereum
- DEFI — DeFi
- USDC — USD Coin