In a pivotal development within the XRP Ledger (XRPL) ecosystem, Ripple CTO David Schwartz has broken his silence on the ongoing vote to implement an automated market maker (AMM) protocol on the ledger's decentralized exchange. Responding to queries and disputes from the XRP community, Schwartz addressed concerns about the prolonged voting process, which seems to be fueled by disagreements among XRPL validators.
Addressing questions from the community, Schwartz engaged with an XRPL enthusiast who raised three crucial points for the proposed AMM amendment. These included ensuring XRP's presence on one side of each new Smart AMM, accepting deposits only from accounts with valid/approved DID codes and enabling both AI and Oracle functionalities.
Schwartz clarified that AMMs do not generate transactions; rather, they provide liquidity when interacting with user-initiated OfferCreate and Payment transactions.
Why not?
However, another validator expressed reservations, citing performance issues such as network instability and the lack of a fix for the online_delete bug. Schwartz, ever the problem-solver, suggested a straightforward fix for the online_delete issue and proposed experimenting with dynamic self-tuning for increased efficiency.
AMMs, the crux of the amendment, facilitate decentralized exchanges by pricing assets algorithmically, eliminating the need for traditional order books. They enable peer-to-peer token trading through liquidity pools secured by smart contracts, lowering exchange fees as token reserves increase.
With 28 out of 35 votes secured and a resounding 60% consensus, the AMM amendment stands on the verge of reshaping the XRPL landscape.
Tomiwabold Olajide
Yuri Molchan
Mushumir Butt
