If you've been diving into the world of Solana-based meme tokens, you've probably noticed how trading dynamics are evolving rapidly. A recent chart shared by Carlos from Blockworks Research highlights a massive shift in Solana's decentralized exchange (DEX) landscape. Proprietary automated market makers, or Prop AMMs, are now capturing over 60% of SOL-stablecoin trading volumes, with even higher dominance in stable-to-stable pairs at around 70%. This isn't just a blip—it's a transformation that's reshaping how liquidity flows on Solana, and it has big implications for meme token enthusiasts.

The chart, which tracks data up to August 31, 2025, shows a clear trend: traditional AMMs like Orca and Raydium (in purple) are losing ground, orderbooks like Phoenix (in green) remain a tiny sliver, and Prop AMMs such as Solfi, Humidifi, and Lifinity (in red) are stacking up to dominate the bars. What started as a niche approach has ballooned, especially since mid-2024, turning Solana's market structure on its head.

What Are Prop AMMs and Why Are They Taking Over?

Let's break it down simply. Traditional automated market makers (AMMs) are like open pools where anyone can add liquidity and trade against a formula that sets prices automatically. Think of them as community-driven vending machines for tokens. Orderbooks, on the other hand, work more like traditional stock exchanges, matching buy and sell orders directly.

Prop AMMs flip the script. Short for proprietary AMMs, these are closed systems run by specific teams or firms. They use their own vaults of liquidity—often backed by professional market makers—and quote prices privately based on real-time oracles and algorithms. Unlike open AMMs, they're not accessible via frontends; instead, they cater to aggregators and high-volume traders who seek the best deals. This setup allows for tighter spreads, faster adjustments to market conditions, and better handling of toxic flow (those sneaky trades that exploit price discrepancies).

On Solana, factors like network jitter and the edge that sophisticated takers have over makers have made orderbooks less viable for spot trading. Prop AMMs sidestep these issues by centralizing control while still operating on-chain. As Helius points out, this shift moves trading logic from private servers to more efficient, proprietary on-chain models. The result? Deeper liquidity for major pairs without the vulnerabilities of fully open systems.

The Impact on Meme Token Trading

Solana has become the go-to chain for meme tokens, thanks to its speed and low fees. Pump.fun launches, viral cats and dogs—it's all happening here. But as Prop AMMs rise, they're influencing how these memes trade, especially when paired with stables or SOL.

For one, better liquidity in SOL-stable pairs means smoother on-ramps and off-ramps for meme traders. If you're flipping a hot new token, you want quick conversions without massive slippage. Prop AMMs are providing that efficiency, potentially reducing costs and improving execution for aggregated trades that include memes.

However, this dominance also highlights a two-tiered DeFi world emerging on Solana. As noted in a Delphi Digital report, Prop AMMs excel for liquid assets like SOL and USDC, while traditional AMMs might stick around for long-tail tokens, including many memes. This could mean that as meme projects mature and gain volume, they benefit from prop-style liquidity, but early-stage pumps might still rely on open pools.

Carlos's original tweet also touches on why orderbooks haven't caught on: structural disadvantages for market makers and network challenges favor these adaptive AMMs. Replies in the thread echo the excitement, with users noting how this feels like a new layer of liquidity forming in real time.

Looking Ahead: Opportunities for Blockchain Practitioners

If you're building or trading in the meme space, keep an eye on Prop AMMs. They could open doors for more sophisticated strategies, like integrating with aggregators for optimal routing. Tools and protocols evolving around this—think advanced oracles or hybrid models—might enhance your edge.

At Meme Insider, we're all about demystifying these trends to help you stay ahead. Whether it's understanding DEX shifts or spotting the next viral token, Solana's innovations like Prop AMMs are key to navigating the chaotic yet rewarding world of memes.

What do you think—will Prop AMMs make meme trading even wilder? Drop your thoughts below!