Solana's DeFi Ecosystem Shifts Towards Private Execution DEXs

According to PANews, Pine Analytics has released a report highlighting a significant shift in Solana's DeFi ecosystem from public, passive liquidity pools to private execution decentralized exchanges (DEXs). New DEXs such as SolFi, Obric v2, and ZeroFi, despite lacking front-end interfaces, are handling 40-65% of on-chain transaction volume through the Jupiter aggregator. These DEXs employ four core design principles: executing trades exclusively through the Jupiter aggregator, utilizing real-time oracle-based pricing, using private funds instead of public liquidity pools, and offering selective quotes based on inventory. This model effectively mitigates MEV attacks and toxic order flows, showing notable advantages in major trading pairs like SOL and stablecoins. Solana's current architecture, characterized by a single leader and MEV auctions, places public quotes at a disadvantage. However, upcoming upgrades, such as concurrent leaders, may alter this scenario. While the private market-making model enhances execution efficiency, it also reduces the openness and composability of DeFi. This evolution reflects Solana's ecosystem gradually developing a unique liquidity supply method that aligns with its technical architecture.