The XRPL Ledger (XRPL) recently achieved a significant milestone with the highly anticipated launch of automated market maker (AMM) functionality. Led by Ripple’s Chief Technology Officer, David Schwartz, the integration of AMM onto the XRPL decentralized exchange (DEX) has been hailed as a monumental evolution for the platform.
This addition to the XRPL DEX is a game-changer, as it replaces manual market making with a non-custodial AMM at its core. This new automated approach streamlines trading processes and provides users with enhanced liquidity provision services. It also opens up passive income opportunities for the XRP community.
David Schwartz expressed his satisfaction with the rollout, highlighting the two years of meticulous effort that went into making it a reality. He emphasized that the introduction of the AMM marks the beginning of a promising journey towards future growth milestones for all stakeholders in the XRPL community.
The XRPL community has warmly embraced the AMM, with figures like Panos Mekras, founder of Anodos Finance, expressing gratitude to those involved in bringing this innovation to life.
The journey towards AMM integration began with the XLS-30 amendment, which underwent deliberation since the previous year. Despite a setback caused by a detected bug that temporarily disrupted consensus, the amendment eventually received validation from XRPL validators in February, paving the way for the AMM launch.
Since its inception, the XRPL AMM has seen a flurry of activity in the crypto market, with numerous automated market maker pools for XRP quickly establishing themselves. Data from XRP Explorer XRPScan indicates that there are currently 210 liquidity pools in operation.
The largest liquidity pool for XRP revolves around the USDC/XRP pair, boasting significant liquidity and trading volume. With many transactions and swaps involving contributions from multiple individuals, this pool exemplifies the growing interest in AMM functionality within the XRPL ecosystem.
In addition to the USDC/XRP pair, other pairs such as SOLO/XRP, BTC/XRP, FLR/XRP, and USDT/XRP have also gained traction, reflecting diverse investment preferences within the community.
The implementation of automated market maker functionality on the XRP Ledger represents a paradigm shift in decentralized exchange operations. It offers enhanced liquidity and passive income opportunities for the XRP community. With enthusiastic support from stakeholders and developers, the XRPL AMM sets the stage for further innovation and growth within the ecosystem.
