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Solana hits 300-millisecond slot target, changing liquidity economics

Solana’s faster block production, driven by an update to validator software, is designed to shorten trading intervals, which could reduce how much value trading bots extract from lagging pool prices.

Reported · Written up by our desk · Market Structure

Solana’s mainnet has reached a reported 300-millisecond slot target, shortening the time allocated for block production and reshaping the tradeoffs for liquidity providers, according to CryptoSlate. The analysis centers on fee-bearing automated market makers, which pool prices can lag behind external markets. In those cases, when external prices move before a pool updates, arbitrageurs can trade against outdated pool prices, capturing the difference while the pool’s liquidity providers effectively bear the informational disadvantage. CryptoSlate reports that shorter trading intervals can reduce the window for profitable price discrepancies, especially when trading fees create a large barrier versus typical short term price moves. The outlet adds that higher net returns must also account for fee income and execution conditions, and that a higher transaction count alone cannot answer how much trading value remains with liquidity suppliers after faster execution and increased competition among bots. The piece also notes that validator software developer Anza issued a Sept. 8 call for volunteers to adopt Agave v4.3, alongside the Solana interval improvements. It says the upgrades change both trading opportunities and the costs of running the network, including different effects for conventional constant product pools versus proprietary AMMs that may rely on quote or oracle driven strategies.

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