Proprietary AMMs and Ethereum

Proprietary AMMs (PropAMMs) facilitate about one third of onchain trading volume on Solana, providing onchain composability with active market-making strategies through cheap, fast oracle updates that keep contract prices up to date. Some teams are beginning to apply similar mechanisms on Ethereum, though combined 24-hour volume there is roughly $10 million compared to $500 million on Solana. The post, by mike and maryam on the Ethereum Research forum, serves as a primer tracing the evolution of onchain trading on Ethereum, exploring PropAMMs on Solana, and discussing possible implications for Ethereum.