PropAMMs handle 90% of Jupiter SOL-to-stablecoin swaps

Aggregators such as Jupiter route a large share of decentralized finance token swaps to proprietary automated market makers and professional trading firms. DWF Ventures estimates propAMMs account for roughly 15–27% of daily on-chain DEX volume and handle more than 90% of Jupiter’s SOL-to-stablecoin trades.

Jupiter presents a single interface for users to exchange tokens while searching across multiple liquidity sources. Its routing logic compares public decentralized exchanges, closed-source propAMMs run by trading firms, and request-for-quote networks that collect private bids from professional market makers, then sends orders to the route that offers the best execution.

Public automated market makers operate as open smart contracts where anyone can deposit liquidity and trades move prices according to an on-chain formula. Proprietary AMMs are privately funded pools managed by trading firms; firms update quotes with internal software and external market data. Trades settled on-chain can be priced and inventory-managed off-chain.

Technical features of some blockchains support private-market making. Short block times and fast finality reduce the window during which a published quote can become stale. Solana has a design target of about 300 milliseconds per slot, while other chains use longer slot times. Request-for-quote systems gather off-chain prices from market makers and compare them with AMM quotes, routing the order to the source that gives the best result for a given trade.

Market data from trading firms shows propAMM fills can offer tight execution. A Jump Crypto review of roughly 20 million fills from March found a median SOL-USDC execution around 0.72 basis points from a centralized-exchange midpoint and that more than 91% of fills were cheaper than Jump’s estimate for the lowest institutional centralized-exchange fee tier. Both DWF Ventures and Jump Crypto have commercial exposure to these markets.

Traditional finance firms are expanding into tokenized assets while connecting those rails to professional liquidity. Nasdaq’s venture arm agreed to invest $100 million in Payward, the parent of Kraken, and plans a framework targeted to launch in the second quarter of 2027 connected to Payward’s xStocks. The London Stock Exchange Group announced a partnership with Payward on tokenized public equities and intends, subject to regulatory approval, to list xStocks on a planned venue in 2027. Some tokenized stock products are integrating RFQ setups and institutional counterparties for execution.

Blockchains continue to make settlement and ownership verifiable on public ledgers, while details of price formation and routing can remain private. Routers decide which liquidity providers receive an order and which pricing sources are compared before an on-chain transaction appears.

Public AMMs remain the primary venue for newly created or thinly traded tokens without deep external reference markets. For heavily traded assets with mature reference prices, proprietary AMMs and RFQ liquidity are positioned to compete on execution quality.