Odaily Planet Daily reports that Kyle Samani posted on X that PropAMM is one of the most important innovations in market microstructure in recent years, and possibly one of the most important in decades.
Samani explained that in traditional CEXs, there are small but real latency differences between different market makers—even microseconds can determine who updates their quote first and who executes first. As a result, in traditional markets, market makers invest heavily in optimizing physical co-location, fiber optics, networking equipment, and hardware, all to gain an advantage in microsecond-level competition. The beauty of propAMM lies in the fact that the blockchain itself directly "hosts" the market maker algorithms; the latency required for market makers to update prices involves only electrons moving within the same physical silicon chip. If the previous market order causes a price change in SOL-USD, this information becomes immediately visible to all propAMM participants and is used to price the next market order. Everything occurs within the same silicon chip, eliminating the need for bidirectional communication between servers.