Jupiter, the most important decentralized alternate (DEX) aggregator on the Solana blockchain with over $2.5 billion in whole worth locked (TVL), is routing almost half of its buying and selling quantity via proprietary automated market makers (AMMs), based on Delphi Digital analyst 0x_Arcana.
In an X put up on July 31, the analyst revealed that proprietary AMMs, resembling SolFi, ZeroFi, and Obric, have quickly gained market share prior to now six months regardless of being closed-source, elevating questions on rising centralization within the Solana ecosystem.
“Over 40% of all buying and selling quantity on Jupiter right now is routed via prop AMMs like SolFi, ZeroFi, and Obric,” 0x_Arcana wrote.
Knowledge from Dune Analytics exhibits SolFi handles 1 / 4 of all Jupiter buying and selling quantity. ZeroFi follows carefully with 22%, whereas Meteora accounts for round 10%.
Jupiter Quantity by AMM
Improved Market Effectivity
In contrast to conventional AMMs — that are totally open and clear on-chain — proprietary AMMs like SolFi mix personal, off-chain value quotes with on-chain commerce execution. They quote costs privately, depend on vault-based liquidity, and execute trades completely via aggregators with out public frontends.
0x_Arcana factors out that this shift could create a extra environment friendly market however strikes away from the clear, permissionless type of earlier AMMs. Merchants appear to care extra about higher costs and execution than platforms’ transparency, which helps proprietary AMMs achieve market share.
“We might see a bifurcated market construction – on one finish refined venues dominating quantity on Jupiter, and on the opposite, V2 type swimming pools like Raydium capturing the tail-end of property,” 0x_Arcana wrote.
Centralization Dangers
Traditionally, AMMs supplied a democratic means for customers to produce liquidity however struggled with points like capital inefficiency. On the similar time, their public nature uncovered merchants and liquidity suppliers to dangers resembling frontrunning and maximal extractable worth, also called MEV.
Proprietary AMMs handle these issues by combining on-chain commerce execution with off-chain pricing and personal liquidity administration. And but, despite the fact that this method can enhance market effectivity, it additionally raises centralization issues, as liquidity and order movement turn into concentrated with a small variety of closed-source entities.
The Jupiter DAO additionally confronted governance challenges and paused all voting via the top of 2025 after backlash over the staff’s outsized voting energy. Holding 20% of the ten billion JUP tokens, the staff’s affect raised issues about equity and belief.
Governance is predicted to renew in 2026 with a renewed give attention to unity, accountability, and sustainable development as Jupiter addresses centralization points each on-chain and in governance.
