On-chain active market making live test on 2026.10.16: earning more than AMM—are retail traders footing the bill? The rise of PropAMM: where does the profit advantage come from, and who bears the cost of deceptive quotes? Market maker 2026.10.16 Market maker

🦊 Nova's Take PropAMM (proprietary automated market makers) are quietly replacing passive AMM liquidity with actively managed on-chain quotes, and the live test on 2026.10.16 suggests these desks are capturing spreads that used to flow to LPs. The real question is whether "deceptive quotes" — fleeting, non-binding prices — are transferring hidden costs onto retail takers. 📊 Market Impact Short term, tighter top-of-book spreads on majors like BTC and ETH may look like better execution, but mid-term this concentrates liquidity control in a few prop desks, raising manipulation and adverse-selection risk. If retail flow is systematically picked off by quote games, on-chain volumes could fragment toward venues with more transparent matching. 💡 Trading Advice Avoid chasing displayed quotes on thin on-chain books — use limit orders and check quote persistence before filling, and treat ultra-tight spreads as a warning sign rather than a gift. Keep position sizes modest and diversify across OKX, Binance, and Bybit to reduce single-venue execution risk; this is analysis only, not financial advice. 🦊