Jupiter, the largest decentralized exchange (DEX) aggregator on the Solana blockchain with over $2.5 billion in total value locked (TVL), is routing nearly half of its trading volume through proprietary automated market makers (AMMs), according to Delphi Digital analyst 0x_Arcana.
In an X post on July 31, the analyst revealed that proprietary AMMs, such as SolFi, ZeroFi, and Obric, have rapidly gained market share in the past six months despite being closed-source, raising questions about increasing centralization in the Solana ecosystem.
“Over 40% of all trading volume on Jupiter today is routed through prop AMMs like SolFi, ZeroFi, and Obric,” 0x_Arcana wrote.
Data from Dune Analytics shows SolFi handles a quarter of all Jupiter trading volume. ZeroFi follows closely with 22%, while Meteora accounts for around 10%.
Jupiter Volume by AMM
Improved Market Efficiency
Unlike traditional AMMs — which are fully open and transparent on-chain — proprietary AMMs like SolFi combine private, off-chain price quotes with on-chain trade execution. They quote prices privately, rely on vault-based liquidity, and execute trades exclusively through aggregators without public frontends.
0x_Arcana points out that this shift may create a more efficient market but moves away from the transparent, permissionless style of earlier AMMs. Traders seem to care more about better prices and execution than platforms’ transparency, which is helping proprietary AMMs gain market share.
“We could see a bifurcated market structure – on one end sophisticated venues dominating volume on Jupiter, and on the other, V2 style pools like Raydium capturing the tail-end of assets,” 0x_Arcana wrote.
Centralization Risks
Historically, AMMs provided a democratic way for users to supply liquidity but struggled with issues like capital inefficiency. At the same time, their public nature exposed traders and liquidity providers to risks such as frontrunning and maximal extractable value, also known as MEV.
Proprietary AMMs address these problems by combining on-chain trade execution with off-chain pricing and private liquidity management. And yet, even though this approach can improve market efficiency, it also raises centralization concerns, as liquidity and order flow become concentrated with a small number of closed-source entities.
The Jupiter DAO also faced governance challenges and paused all voting through the end of 2025 after backlash over the team’s outsized voting power. Holding 20% of the 10 billion JUP tokens, the team’s influence raised concerns about fairness and trust.
Governance is expected to resume in 2026 with a renewed focus on unity, accountability, and sustainable growth as Jupiter addresses centralization issues both on-chain and in governance.
