XRP Ledger (XRPL) Welcomes New AMM Pools

*AMM, or Automated Market Maker, is a mechanism used on decentralized exchanges (DEX) to facilitate cryptocurrency trading. In short, AMM is a type of algorithm that automatically determines asset prices on the exchange based on supply and demand, rather than relying on traditional order matching models.

The main advantages of AMM include:

Better liquidity: AMM can improve liquidity on the exchange, allowing traders to buy and sell more easily without waiting for order matching with other users. No need for orders: Users can transact at any time as prices are automatically set by the AMM algorithm. Openness: AMM is open to anyone who wants to provide liquidity. In summary, AMM is a technology aimed at making cryptocurrency trading more flexible, liquid, and accessible to a wide range of users.

XRPL AMM

The long-awaited Automated Market Maker (AMM) feature has finally arrived on the XRP Ledger (XRPL), along with liquidity pools that clearly demonstrate the rapid adoption of this new feature. According to the latest information from XRPScan, these liquidity pools have already exceeded the magical number of 1000, offering a wide range of assets in private pools.

According to data, one of the largest liquidity pools contains the XRP/XCASH pair, and the AMM account has been identified as "rUCLr….ABx6D", with a balance of 273,184,692.307334 LPToken. These innovations taking place on the XRP Ledger with the launch of the AMM feature underscore the long-term desire for this product.

AMM sheds positive light on the XRP Ledger as a destination for decentralized exchanges (DEX) and other decentralized finance (DeFi) innovations. Despite being one of the most versatile Layer-1 blockchain networks, the lack of key features such as AMM has kept it lagging behind major competitors.

David Schwartz, Ripple's CTO, also confirmed the introduction of the AMM feature, an innovation in development for about two years. While eagerly anticipating its impact on traders and innovators, the veteran warned users to use the AMM feature cautiously when trading.

This is just the beginning of many milestones. The ultimate goal of the XRP Ledger is not only to introduce this AMM but also to evolve towards a vibrant ecosystem that will compete with other major chains such as Ethereum (ETH), Solana (SOL), and BNB Chain (BNB).

Before introducing the AMM feature on the main blockchain, some key solutions were also introduced, such as the Clawback amendment. This feature allows for the recovery of funds in cases where fraud or other events require the recovery of funds from wallets. This serves as a safeguard for innovators, especially those who may use the new AMM update to create trading engines.