Prop AMMs: The Challenges Market Makers Face Today on Solana

Prop AMMs have become one of the most important primitives on Solana and increasingly DeFi more broadly. The space has moved beyond the simple constant-product formula, giving professional market makers the ability to actively manage positions, set dynamic spreads, and compete on execution quality onchain. In theory, this brings the best parts of traditional market-making and price discovery to DeFi. In practice, there’s more friction and it presents unfamiliar challenges, even for some of the