Solana introduces proprietary automated market maker PropAMM to enhance on-chain trading efficiency

Foresight News reported that the Solana Foundation has published an article introducing its latest proprietary automated market maker (PropAMM) mechanism, which aims to improve trading efficiency between decentralized exchanges (DEX) and centralized exchanges (CEX). Unlike traditional centralized market makers, PropAMM adopts a hybrid approach, utilizing offline predictive pricing models to push minimal price data on-chain, and uses smart contract logic to calculate quotes in real time. This method combines the efficiency of CEX with the settlement advantages of DEX. PropAMM is also capable of dynamic quoting, providing deep liquidity for regular users while preventing outdated price arbitrage. According to the information provided, PropAMM delivers 99% of CEX efficiency at a much lower cost than traditional models.