Kyle Samani: PropAMM is one of the most important innovations in market microstructure over the past few decades.

Gate News reports that on March 12, Multicoin Capital co-founder Kyle Samani posted on X platform stating that PropAMM is one of the most important innovations in market microstructure in recent years, and may even be one of the most significant innovations in decades. Samani explained that in traditional centralized exchanges, there are small but real latency differences between market makers, even just a few microseconds, which can determine who updates quotes first and who trades first. Therefore, in traditional markets, market makers need to invest heavily in optimizing physical co-location, fiber optics, network equipment, and hardware to gain an advantage in microsecond-level competition. The advantage of PropAMM is that the blockchain itself directly “hosts” the market maker algorithms, and the latency required for market makers to update prices involves only electronic movement within the same physical silicon chip. If a market order causes the SOL-USD price to change, this information is immediately visible to all PropAMMs and used for the next market order pricing. Everything happens within the same silicon chip, eliminating the need for bidirectional communication between servers.