According to @deanmlittle (source: https://twitter.com/deanmlittle/status/1996239094884757952), proprietary AMMs are profitable because their fee mechanics do not match common retail assumptions and professional market makers actively manage exposures instead of passively absorbing impermanent loss or volatility. According to @deanmlittle (source: https://twitter.com/deanmlittle/status/1996239094884757952), trading in this context is not conducted entirely on-chain, indicating professionals use off-chain tools and hedging practices to mitigate IL and volatility rather than accept them as losses. According to @deanmlittle (source: https://twitter.com/deanmlittle/status/1996239094884757952), traders evaluating LP returns should account for prop AMM-specific fee structures and professional risk management, not naive IL models, when assessing DeFi yield and liquidity quality.