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XRP Ledger (XRPL) Welcomes New AMM Pools in Epic DEX Showdown

source-logo  u.today 23 March 2024 16:29, UTC

The much anticipated automated market maker (AMM) feature is live on XRP Ledger (XRPL), and accompanying it are liquidity pools that show fast-growing embrace of the new feature. According to an update from XRPScan, these liquidity pools have surpassed the 1,000 milestone with a wide-ranging list of assets hosted in private pools.

Per the data, one of the biggest liquidity pools features the XRP/XCASH pair with the AMM account identified as "rUCLr….ABx6D" and a balance of 273,184,692.307334 LPToken. The innovations ongoing in XRP Ledger with the launch of the AMM feature underscores the long-term yearning for this product.

AMM is now live on XRPL mainnet! First few pools are rolling in 😀 - https://t.co/RR0LsMcvEG pic.twitter.com/epnT2QESzS

— XRPScan (@xrpscan) March 22, 2024

The AMM now positions XRP Ledger as a positive destination for decentralized exchanges (DEX) and other decentralized finance (DeFi) related innovations. Despite being ranked one of the most versatile Layer-1 blockchain networks, the lack of key features like the AMM has kept it behind its key peers.

Ripple CTO David Schwartz also acknowledged the AMM feature rollout, an innovation developed for approximately two years. While he looks forward to the impact on traders and innovators, the veteran warned users to be careful when trading using the AMM.

Start of many milestones to come

The ultimate ambition of XRP Ledger is not to launch just this AMM but to evolve into a vibrant ecosystem to compete with other major chains like Ethereum (ETH), Solana (SOL) and BNB Chain (BNB), respectively.

Before the launch of the AMM on the mainnet, some key solutions like the Clawback amendment had also been launched. This feature enables fund recovery in cases where fraud or other events necessitate the recovery of funds from wallets.

This feature serves as an insurance card for innovators, especially those who may now be making use of the new AMM update to create trading engines.