A NEW PATH FOR PROPRIETARY AMMS

Summary from the TLDR Crypto newsletter

Proprietary AMMs managed by professional market makers have captured 40%+ of Solana trading volume by updating pricing curves up to 74 times per second, enabled by extremely cheap updates compared to swaps that allow market makers to achieve Top of Block priority with minimal fees and avoid front-running. EVM's expensive storage writes versus swaps create only a 1:10 ratio instead of Solana's 1:1000, making updates costly and vulnerable to arbitrageur front-running since outbidding requires only 10x the priority fee. A proposed solution combines a Global Storage smart contract for price curve parameters with a builder policy that reserves the first 5-10% of block gas exclusively for these updates ordered by priority fee, creating a protected "fast lane" that guarantees Top of Block execution and establishes a local fee market competing only against other updates rather than all DeFi transactions.