Ripple's XLS-30d, an automated market maker (AMM) developed on top of the XRP Ledger, has successfully undergone a security audit conducted by blockchain security firm CertiK.
CertiK has assessed its security and confirmed its adherence to high-security standards, highlighting its importance in the evolution of decentralized exchange functionality.
An AMM is a kind of protocol used in decentralized exchanges (DEX) which determines the price of assets using specific mathematical calculations. Instead of using an order book like a traditional exchange, where buyers and sellers create orders at different prices, an AMM sets the price of a token based on a pricing algorithm. In an AMM, liquidity providers deposit pairs of tokens into a liquidity pool. These pools make trading possible because users can trade directly with the pool, instead of having to find another person to trade with.
The XLS-30d proposal, which was introduced in January, brings a slew of new features such as new transaction types, voting on trading fees as well as a continuous auction mechanism.
Established in 2018, CertiK primarily focuses on identifying potential vulnerabilities in blockchain protocols and smart contracts to ensure their safety and correctness.In addition to security audits, CertiK provides on-chain monitoring services, and has developed a product called Skynet that assigns security scores to smart contracts and blockchain protocols.
It is worth mentioning that CertiK recently faced controversy in the wake of a significant security breach. Merlin DEX, a decentralized exchange on the zkSync platform, was compromised by bad actors just days after CertiK conducted an audit.
The firm defended the quality of its audit and attributed the loss to a private key management issue rather than a flaw in the platform's code.
The successful audit of Ripple's XLS-30d marks a shared commitment between Ripple and CertiK to enhance the security and reliability of the blockchain ecosystem.