Compilation: Tim, PANews
PANews Editor's Note: PANews November 3 news - HumidiFi's 30-day trading volume surpasses Meteora and Raydium, leading the Solana DEX market. Most people in the market know little about HumidiFi, and the project's official Twitter account has only 12,000 followers. For this "invisible champion," PANews has compiled and organized relevant content from authors TATO and azsui, including an introduction to the HumidiFi project and the upcoming ICO event.
Main Text:
What is Prop AMM? What is HumidiFi?
Traditional Automated Market Makers (AMM):
• Allow any user to inject liquidity → earn transaction fee revenue
• Use a passive pricing mechanism (x*y=k constant product formula)
• Require TVL to achieve deep liquidity
• Liquidity providers (LP) face impermanent loss risk
Professional Market Maker Automated Market Makers (Prop AMM):
• All liquidity is provided by professional market makers
• Pricing strategies are continuously updated and are independent of user trading behavior
• Algorithms actively manage inventory like centralized exchange market makers
• No public liquidity providers (LP) = retail investors do not bear impermanent loss
Core Features of HumidiFi:
• Rapid quote updates, with multiple repricings per second
• Private order flow mechanism reduces volatility and front-running risk
• Achieves capital efficiency by precisely concentrating liquidity in the areas of highest demand
• Operates entirely through on-chain algorithms
• Accessible only via Jupiter routing
It can be understood as an on-chain version of Citadel Securities, a completely blockchain-based and permissionless market maker solution.
Achievements of HumidiFi
Dominance in Trading Volume
• Achieved approximately $100 billion in total trading volume within 5 months
• Accounts for 35% of the total trading volume on the Solana chain DEX
• Daily trading volume stabilizes between $10 billion and $19 billion
• Last month's trading volume reached $34 billion (exceeding the total of Raydium and Meteora)
Execution Quality
• SOL/USDC spreads are narrower than Binance
• Tighter quotes → lower slippage, price impact minimized to near zero
• 99.7% execution rate (almost zero transaction failures)
Capital Efficiency Miracle
• Handles $819 million in daily trading volume with only $5.3 million in TVL
• Achieves 154 times capital efficiency (traditional AMM around 1 time)
• Oracle updates require only 143 computation units (about 1000 times lighter than ordinary exchanges)
Result? Users get better prices without even knowing that HumidiFi is operating behind the scenes.
Why Choose HumidiFi?
Technical Advantages
• Ultra-lightweight oracle updates require only 143 computation units
• Sub-second price refresh (competitors need 15-30 seconds)
• Liquidity tightly concentrated around oracle prices = ultimate capital efficiency
Jupiter Ecosystem Integration Advantages
• Jupiter handles over 80% of the exchange traffic on Solana
• HumidiFi occupies 54.6% of Jupiter's professional market maker routing
• Better prices → more routing options → higher trading volume → price advantage reinforced (flywheel effect)
Invisible Advantages
• No front-end interface
• Private order flow reduces MEV attack risks
• Anonymous operation = reduces regulatory target risks
First-Mover Scale Effect
While competitors aim for millions, HumidiFi directly achieves breakthroughs in the billions. In the DeFi market, liquidity attracts liquidity, and they have seized the initiative.
The Future is Here: HumidiFi Will Lead the Development of Solana DeFi
In short, it always provides you with the best quotes. For users, this is our most core demand.
HumidiFi will launch its governance and utility token $WET on Jupiter's newly launched DTF Launchpad in November (exact date to be determined).
This sale will adopt a fixed price and will be conducted in three phases.
- Whitelist phase
- $JUP staker phase
- Public sale phase
The key point is that the $WET token has not received any investment from venture capital firms.
This means that if venture capital firms intend to purchase, they must participate in the subscription during the ICO period or buy from the secondary market after the token is publicly listed.
After the sale ends, $WET will immediately open for trading in the liquidity pool on the Meteora platform.
Conclusion
- HumidiFi is a professional AMM protocol, accounting for over 50% of total DEX trading volume.
- $WET will be the first ICO project on the Jupiter DTF Launchpad platform.
- $JUP stakers will be able to participate in this ICO subscription.
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