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- RippleX found a problem with AMM pools on XRP Ledger, telling users not to deposit funds until fixed.
- Ripple’s CTO stresses safety guidelines for using the AMM feature to prevent potential losses.
RippleX, the developmental arm of Ripple, has confronted a technical issue impacting Automated Market Maker (AMM) pools on the XRP Ledger. A technical disparity in a small number of AMM pools on the XRP Ledger was recently revealed by RippleX. The inconsistent processing of transactions has impacted the operation of these pools. AMM pools serve as vital components of decentralized exchanges (DEXs), facilitating trading activities without the need for traditional order books.
We’ve identified a discrepancy in a few AMM pools, in which transactions are not executing as intended. Our engineering team is working to resolve the issue alongside community participants. Out of an abundance of caution, it’s best not to deposit new funds into AMM pools for…
— RippleX (@RippleXDev) March 23, 2024
Due to a technical error, RippleX has cautioned users not to deposit money into the impacted AMM pools. The goal of this preventive measure is to lessen any prospective consequences that may result from the current problem. Users holding liquidity provider (LP) tokens in these pools are urged to redeem them until resolved.
Despite the difficulties caused by the bug, RippleX’s technical staff is working hard to get the AMM pools back to normal. The company remains committed to promptly addressing the issue and has engaged with the community to expedite the troubleshooting process.
Community Response and Canary Network Proposal
RippleX’s open communication on the technical problem impacting AMM pools has received excellent feedback from the XRP Ledger community. Community members have expressed appreciation for the proactive approach taken by RippleX to maintain the integrity of the ecosystem. Notably, the recent introduction of the AMM feature has generated significant enthusiasm within the community, creating numerous liquidity pools.
In light of the recent glitch, calls for enhanced testing procedures have surfaced within the XRP ecosystem. Notably, prominent figures like WietseWind advocate for establishing a Canary Network, a dedicated testing ground for protocol upgrades and features. The proposed Canary Network aims to emulate the mainnet’s functionality while allowing for real-time testing, minimizing the risk of potential mishaps upon deployment. This initiative aligns with the broader industry trend of deploying upgrades on testnets before introducing them to the mainnet, ensuring a smoother transition and mitigating unforeseen technical challenges.
Echoing earlier coverage by Crypto News Flash, Ripple’s CTO, David Schwartz, has emphasized safety guidelines for utilizing the AMM feature, particularly cautioning against single-sided deposits that could lead to potential losses due to insufficient liquidity. With the maturation of AMM pools and increased participation from arbitrageurs, risks are expected to diminish over time, ensuring a safer trading environment.
Renowned Figures Clash Over XRPL Viability
Kaj Leroy, founder of the celebrated Xpunks NFT collection, has raised concerns regarding the XRP Ledger’s (XRPL) functionality. Leroy’s comparative analysis between XRPL and Solana has drawn attention to the challenges of the former, particularly focusing on its automated market maker (AMM) functionality.
Leroy highlighted XRPL’s ongoing challenges and issues surrounding its AMM functionality. He emphasized Ripple’s caution against utilizing the AMM due to inherent bugs causing disruptions in transaction execution. Leroy empathized with businesses and individuals facing financial setbacks due to these shortcomings.
Drawing comparisons to SpaceX’s trajectory, Leroy underscored Solana’s resilience in overcoming technical difficulties. He praised Solana’s robust technology, growing market adoption, and token performance, contrasting them with XRPL’s current state.