The XRP Ledger (XRPL) has introduced an Automated Market Maker (AMM) feature. This significant development went live on March 22, as announced by the RippleX team. The integration of this non-custodial AMM marks an important advancement in the XRPL decentralized exchange (DEX). It transitions from traditional liquidity models based on central limit order books to a more dynamic and automated system. The RippleX team views this as a crucial step in the XRPL’s ongoing evolution, highlighting its importance in broadening the DeFi ecosystem’s capabilities.
The newly introduced AMM functionality, enabled by the XLS-30 amendment, offers liquidity providers an attractive opportunity to earn returns. This development aims to reduce slippage for traders, especially in less commonly traded tokens. By incorporating AMM as a core component of the XRPL DEX, the platform now supports more efficient and accessible trading. David Schwartz, Ripple’s CTO, expressed enthusiasm for the launch, acknowledging the nearly two years of development effort that culminated in this achievement. He emphasized the potential for future growth and the broadening impact on users, traders, developers, and market makers.
XRPL AMM launch marks DeFi ecosystem milestone
With the integration of AMM functionality, XRPL makes a significant leap forward. The RippleX team has expressed that the XLS-30 amendment represents a pivotal moment in XRPL’s evolution. This initiative is seen as an essential step towards enhancing the wider DeFi ecosystem. Developers now have the tools to integrate with the AMM. They can create custom interfaces for trading and liquidity provision. This flexibility is expected to encourage further innovation and engagement within the XRPL community.
Following the rollout, the crypto community has rapidly embraced the new liquidity provision service. Data from XRP Explorer XRPScan shows that 121 liquidity pools were operational shortly after the launch. This enthusiastic response underlines the perceived value and potential of AMM on the XRPL platform. Emi Yoshikawa, Ripple’s VP for Strategic Initiatives, expressed astonishment at the community’s robust engagement. The USDC/XRP pool emerged as the largest, demonstrating significant liquidity and trading volume.
Community engagement and passive income opportunities
The launch of AMM functionality on XRPL has sparked considerable interest among XRP community members. An XRP enthusiast shared their experience, highlighting the potential for passive income in the new service. With an initial commitment of only 60 XRP, they received returns in less than eight hours. This example illustrates the passive earning opportunities that the AMM provides to liquidity providers. The active participation of the community, with hundreds of transactions and swaps recorded in the early hours, points to a strong start for XRPL’s new feature.
The introduction of 121 liquidity pools for XRP reflects the community’s eagerness to engage with the new AMM functionality. The largest liquidity pool, featuring the USDC/XRP pair, has already seen substantial activity. This pool alone accounted for 675 transactions and 220 swaps from 322 contributors, showcasing the vibrant ecosystem that XRPL’s AMM functionality fosters. As the XRPL continues to evolve, the AMM feature is expected to attract more users and developers. It aims to enhance the liquidity and efficiency of the XRPL DEX, offering a promising avenue for passive income generation within the crypto space.
