The mysterious team that has dominated Solana for three months is about to issue coin on Jupiter?

Original title: The mysterious team that dominated Solana for three months is going to issue coin on Jupiter?

Original Author: SpecialistXBT

Original source:

Reprinted: Mars Finance

A team without an official website, without a community, and with an anonymous team consumed nearly half of the trading volume share that occurred on Jupiter within 90 days.

To gain a deeper understanding of this mysterious project, we first need to step into an on-chain trading revolution that is quietly happening on Solana.

How to Reconstruct On-Chain Trading for Self-Operated AMM

In the context of AMM, toxic order flow refers to high-frequency arbitrageurs who use low-latency connections and advanced algorithms to quickly capture price differences and rapidly smooth out the price discrepancies between on-chain locations and centralized exchanges like Binance. The profits taken by these toxic order flows are ultimately borne by traders, liquidity providers, and on-chain market makers.

In traditional financial markets using a centralized limit order book (hereinafter referred to as “CLOB”) for trading, professional market makers can respond to toxic order flow in various ways (such as adjusting spreads and pausing quotes). They can identify traders with informational advantages by analyzing order flow patterns and adjust quotes accordingly, thereby reducing losses caused by “adverse selection”. Therefore, market makers operating on Solana naturally chose DEXs like Phoenix that adopt CLOB. However, during the “meme frenzy” period from 2024 to early 2025, the Solana network was overwhelmed by unprecedented demand, and market makers' orders were often unable to be submitted to the chain. At the same time, updating quotes required a significant amount of costly computing units, leading to a sharp increase in market makers' costs.

A series of tricky practical issues are forcing a group of the most experienced AMM market makers to fundamentally rethink the operation of on-chain markets, and a revolutionary new market structure is beginning to take shape.

This new paradigm is called “Proprietary AMM” (Prop AMM), which aims to provide lower spread and more efficient liquidity on-chain, while minimizing the risk of being exploited by high-frequency arbitrageurs.

SolFi, ZeroFi, and Obric are the initial self-operated AMM “three giants”. They do not publicly provide contract interfaces but directly offer the interfaces to major trading routers like Jupiter, and require Jupiter to route orders to their AMMs. This design makes it extremely difficult for external professional arbitrageurs like Wintermute to interact directly with the contracts, as they cannot understand or predict the trading logic, thus preventing the replacement of market maker quotes and the “adverse selection” problem for those with informational advantages.

HumidiFi's Lightning Battle

The competition for self-operated AMM will reach a fever pitch by July 2025, and a project called HumidiFi has rewritten the entire market landscape at an astonishing speed.

HumidiFi officially launched in mid-June 2025, and just two months later, it had already captured 47.1% of all self-operated AMM trading volume, becoming the undisputed market leader. In contrast, the former giant SolFi saw its market share plummet from 61.8% two months ago to 9.2%.

HumidiFi's dominance is particularly evident in the SOL/USDC trading pair. On October 28, HumidiFi processed $1.08 billion in SOL/USDC trades in a single day, accounting for 64.3% of the total volume for that trading pair on that day.

HumidiFi's penetration rate in the Jupiter routing is also very high. As an aggregator occupying 86.4% of the market share on Solana, Jupiter's routing choices largely determine the actual experience of traders. Data from October 20 shows that HumidiFi's market share in Jupiter is as high as 46.8%, more than four times that of the second-place TesseraV (10.7%).

Expanding the vision to the entire self-operated AMM ecosystem, HumidiFi's dominance is equally solid. On October 28, the total trading volume of all self-operated AMMs reached 2.18 billion USD, with HumidiFi alone accounting for 1.35 billion USD, a staggering 61.9% share. This figure not only far exceeds the second place, SolFi, at 309 million USD, but even surpasses the total trading volume of all competitors ranked 2-8.

HumidiFi's victory was almost achieved while being completely “invisible”. It had no official website, no early Twitter account, and no information about the team members was ever disclosed.

HumidiFi does not need marketing, does not need airdrops, and does not need to tell stories. It only needs to provide better spreads and better execution prices than its competitors in every transaction. When Jupiter's routing algorithm repeatedly chooses HumidiFi, the market has cast its vote in its own way.

The ultimate competition of speed and cost

The key to HumidiFi's success lies in its extreme compression of the computational costs for oracle updates, and it cleverly transforms this technological advantage into absolute market dominance through the Jito auction mechanism.

Firstly, HumidiFi has a very low consumption of computational resources. According to data provided by @bqbrady, each oracle update of HumidiFi only consumes 799 CUs (computational units). In contrast, its main competitor SolFi requires 4339 CUs. TesseraV, operated by the top market maker Wintermute, also requires 1,595 CUs, which is twice that of HumidiFi.

HumidiFi also fully leverages their CU low consumption advantage to achieve absolute transaction priority in the Solana MEV infrastructure Jito auction. In the Jito auction, transaction priority is not determined by absolute tips but by the Tip per CU. HumidiFi pays approximately 4,998 lamports in tips for each oracle update. Due to its extremely low CU consumption (799 CUs), its Tip per CU ratio reaches an astonishing 6.25 lamports/CU.

According to data provided by Brennan Watt, an engineer from Solana's core developer Anza, HumidiFi uses 6 times less CU than the former leader SolFi of Prop AMM, and has given more than 8 times the tip.

Another key advantage of HumidiFi is the update frequency of its oracle. HumidiFi updates its oracle at a rate of 17 times per second, far exceeding its main competitors (SolFi's 13 times, TesseraV's 11 times, and ZeroFi's 10 times).

In the volatile cryptocurrency market, this near real-time price tracking ability allows it to always stay close to fair value, preventing arbitrageurs from finding opportunities, while avoiding the need to widen the spread for self-protection, thus providing tighter liquidity.

In addition, HumidiFi has also done well in cost control. HumidiFi's daily operating cost is only $2,247. In contrast, although SolFi manages assets under management (AUM) that are 5 times larger than HumidiFi's ($8 billion vs $1.6 billion), its daily cost is only 20% lower than that of HumidiFi ($1,785).

WET coin listed on Jupiter DTF

During the community call on the evening of October 30th, the Jupiter team announced the first launch project of their ICO platform DTF: HumidiFi, with the token symbol WET.

According to the disclosed demo webpage, the new issuance is divided into three parts:

Whitelist ( acquisition rules have not yet been determined ) can ensure a portion of the share.

JUP stakers can receive guaranteed shares based on the amount staked.

The public share adopts a first-come, first-served (FCFS) model. Once fully subscribed, it will immediately open for circulation on the chain, with no lock-up waiting period.

It is worth noting that the HumidiFi team explicitly stated on Twitter that “there are no VC shares,” which is particularly rare in the current market environment filled with VC pre-sales and low circulation high FDV.

Self-operated AMM is a “winner-takes-all” track. HumidiFi has achieved its dominance today relying on technological strength, but this also means that once new competitors make breakthroughs in CU efficiency or oracle speed, they could quickly erode its market share. This Prop AMM war has clearly just begun.