Prop AMMs Are Solana's Biggest DeFi Innovation | Chris Hermida

In this episode of Lightspeed, Jack interviews Chris Hermida, co-founder of Switchboard, about the trend of prop AMMs (or Oracle AMMs) on Solana. Chris explains that prop AMMs use oracles to provide more accurate and reactive pricing compared to traditional AMMs, which rely on the last trade in the pool. This leads to tighter spreads and reduced impermanent loss for liquidity providers. The rise of aggregators like Jupiter has enabled the growth of prop AMMs on Solana, as they route order flow to the best-priced AMMs. The discussion covers the competitive landscape, the mystery surrounding the teams behind some prop AMMs, and the potential for prop AMMs to expand to other chains and asset types, including RWAs. They also touch on the role of RFQs and the importance of managing toxic flow.