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

Kyle Samani, in an article on the X platform, stated that PropAMM is one of the most important innovations in market microstructure in recent years, and perhaps even one of the most important innovations in decades. Samani explained that in traditional CEXs, tiny but real latency differences exist between different market makers, even if it's only a few microseconds, which is enough to determine who updates prices first and who executes 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 beauty of propAMM is that the blockchain itself directly "hosts" the market maker's algorithm. The latency required for market makers to update prices only involves the movement of electrons within the same physical silicon wafer. If a previous market order causes a change in the SOL-USD price, this information is immediately visible to all propAMMs and used to price the next market order. Everything happens within the same silicon wafer; there is no longer a need for bidirectional communication between servers.