As the Jupiter DTF is set to launch next week with the HumidiFi related IPO project, this dark pool-style Prop AMM, which has rapidly risen in the Solana ecosystem, has drawn attention once again. Although the project's current information disclosure is low, with its impressive data performance and unique technical mechanism, HumidiFi stands out in the competition of Prop AMM on Solana, becoming one of the protocols with the most outstanding trading volume and growth rate.
This research will systematically sort out the track background, MEV and dark pool value, core mechanism of Prop AMM, advantages of HumidiFi, data performance, and potential risks to provide investors with a complete understanding framework.
One, background of the dark pool and Prop AMM track
Dark pools are not a Web3 innovation but rather a professional trading scenario from traditional financial markets. Dark pool transactions have several core features:
First, it occurs in trading venues outside the public market (e.g., NYSE); second, before execution, the direction, price, and quantity of orders are not publicly disclosed; third, matching is automatically executed by the system, not through OTC-style peer-to-peer negotiation.
The existence of dark pools is essentially to meet professional trading needs: to avoid large orders causing market volatility, reduce slippage and front-running, and make transaction prices closer to the midpoint price. These features correspond to a significant pain point in the Crypto world - MEV (sandwich attacks).
Although Solana does not have a native mempool, some staking protocols and node infrastructures have introduced mechanisms similar to bundles, creating a window for MEV, which means the demand for dark pools remains strong on Solana.
Therefore, the core value of dark pools in Crypto is to reduce MEV exposure caused by a fully transparent on-chain environment and improve the efficiency of large transactions.
Two, analysis of Prop AMM mechanisms
Prop AMM (Proprietary AMM) is not a simple optimization of traditional AMM, but rather a more on-chain implementation closer to professional market makers (MM). Behind HumidiFi and other newly emerged Prop AMMs on Solana is a trend of the entire on-chain trading migrating from 'automated market making' to 'professional market making'.
1. Quoting mechanism: from passive to active
The price of traditional AMMs is driven by transactions, and price deviations require external arbitrageurs to correct, making it completely passive. In contrast, the price of Prop AMM is actively set by market-making algorithms, referencing oracle prices, midpoint prices, external transaction prices, LP states, volatility, and other multidimensional factors.
This means that Prop AMM resembles a professional market maker on-chain, rather than just executing a fixed formula.
2. Price curve design: from fixed to dynamic
The pricing of traditional AMMs is based on a fixed x·y=k product curve, while Prop AMM uses fully customizable, dynamically adjustable curves. The curve changes in real-time based on market fluctuations, LP deviations, transaction volume changes, and risk conditions.
This dynamism allows Prop AMM to better simulate the order book depth of CEX, significantly reducing slippage when accommodating large transactions.
3. Liquidity structure: from open to specialization
Traditional AMMs open LP rights to all users, while the liquidity of Prop AMM is solely provided by professional market makers.
The advantages of professional LPs lie in stable depth, prices closer to the midpoint price, and the ability to conduct more professional risk management, which is why the transaction efficiency of Prop AMM is generally superior to traditional AMM.
Overall, Prop AMM is an upgrade of on-chain market-making logic, aiming to gradually bring on-chain trading closer to CEX experience.
Three, competitive landscape of Prop AMM on Solana
Currently, multiple Prop AMM DEXs have emerged on Solana, and based on public data, HumidiFi's performance is the most outstanding.
According to Dune (The DeFi Report dataset):
Since its launch at the end of May, HumidiFi's cumulative trading volume has surpassed $112B
Some researchers describe it as:
Since its launch in May, it has accumulated over $11.2 billion in transactions.
This is currently the highest data among Solana's Prop AMMs.
Complete data reference:
https://dune.com/the_defi_report/prop-amms
HumidiFi has become one of the most important high-frequency trading infrastructures on the Solana chain.
Four, why HumidiFi can outperform similar protocols
The technical analysis from Anza engineers, a spin-off team from Helius and Solana Labs, can be summarized into three core advantages:
1. Lower computational resource consumption
A more streamlined execution logic gives HumidiFi a more cost-effective throughput capability in Solana's high concurrency environment.
2. More frequent oracle updates
More real-time price updates significantly reduce the probability of slippage and deviation from the midpoint price, improving the execution efficiency of large orders.
3. Higher trading priority
HumidiFi will pay higher tips to staking nodes to compete for transaction positions in the block.
This is crucial for dark pools and high-frequency scenarios, as higher priority equals lower MEV risk and a more stable transaction experience.
Based on the above characteristics, HumidiFi has become one of the fastest-growing and most efficient protocols in the Solana ecosystem's Prop AMM track.
Five, potential shortcomings and risk points of the project
1. No documentation, no white paper
The external environment cannot directly verify its algorithmic mechanism, risk control logic, or contract execution details.
2. Lack of team information
There is no public team composition, background, or audit roadmap, resulting in very low transparency.
3. Dark pool structure relies on underlying data transparency
On-chain dark pools are different from CEX dark pools, and behaviors under extreme market conditions still lack verification.
4. The inherent conflict between DeFi transparency vs. project mystery
The first principle of DeFi is transparency, but HumidiFi's operational method is entirely opaque, which poses the greatest risk to many institutional investors.
These factors mean that despite HumidiFi's performance already being ahead, its weak information disclosure may become the main uncertainty variable.
Six, summary: has growth potential, needs to continuously monitor disclosure dynamics
HumidiFi is one of the on-chain trading infrastructures in the Solana ecosystem with the most structural advantages:
112B+ transaction growth speed
Structural optimization capability for MEV
High transaction efficiency brought by professional making and dynamic curves
On-chain implementation close to CEX depth experience
High-priority execution with low computational consumption
Everything indicates that HumidiFi is likely to become a key component of Solana's future liquidity layer.
However, some opaque characteristics need to be continuously monitored for development dynamics.
As the new issuance through Jupiter DTF takes place next week, the popularity of HumidiFi will further increase, but for investors, it is essential to fully understand its technical advantages while recognizing the unpredictability brought by insufficient information disclosure.
