Published: January 18, 2025 at 1:41 am
Updated on January 18, 2025 at 1:41 am
Hey, crypto fam! The XRP Ledger (XRPL) community has just achieved something massive – the green light for an amendment that opens the door to Automated Market Maker (AMM) pools, with Ripple’s stablecoin, RLUSD, in tow. This could be a game changer for XRP liquidity and RLUSD’s reach.
What’s the scoop? The accepted AMMClawback amendment has garnered over 85% approval from XRPL validators. It’s a significant move since it allows tokens with a clawback function to join in on the AMM action, specifically RLUSD. This follows the earlier successful passing of the XLS-30D amendment back in March that originally set the stage for AMMs on XRPL.
The clawback feature was accepted back in February 2024 for a reason – it’s about compliance, especially for financial players. It gives issuers the ability to reclaim tokens under certain conditions, like criminal activity, which could elevate trust in the ecosystem. But before this amendment, tokens with a clawback were kept out of AMMs.
This amendment brings two important changes:
1. AMM Interaction: Tokens with a clawback can now join AMM pools.
2. Deposit Conditions: The rules for putting tokens into AMM pools have been updated so that frozen tokens are off-limits for deposits.
Plus, a new transaction type, AMMClawback, has been created allowing issuers to reclaim tokens put into AMM pools. This all lays the groundwork for RLUSD and XRP to pool up together.
The amendment’s path to approval was clear, with 29 votes for and only six against – that’s a solid 82%. As Vet, a prominent dUNL validator, confirmed, it already had the 80% approval it needed for two weeks.
Now, the approval has jumped over 85%, with 30 validators on board and just five opposing. If this trend holds for two more weeks, it goes live on January 30, 2025. This means anyone can create AMM pools with RLUSD from then on.
Since RLUSD hit the scene in December 2024, it’s been making some noise across various exchanges, but it hasn’t landed on big platforms like Binance and Coinbase yet. Ripple’s CTO, David Schwartz, and other experts are saying that RLUSD’s full adoption could supercharge XRP liquidity. Integrating RLUSD into AMM pools seems like a big step in that direction.
Panos Mekras from Anodos Finance is also hyped, suggesting community members should get ready to provide liquidity and use swap features once this amendment kicks in. Anodos Finance is gearing up to facilitate this, creating a platform for users to dive into the new world of AMMs.
There you have it – a big shift for the XRPL and for automated trading systems in the crypto space. With validator backing and community excitement, XRP and RLUSD could be hitting a new level soon.
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