RippleX Shares Impressive Update on XRP Ledger DeFi AMM
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The XRP Ledger development and support team, RippleX, has provided updates on the progress of XLS-30d, which aims to add AMM capability to XRPL.
Last year, the RippleX team proposed the XLS-30d technical specification to build a protocol native automated market maker (AMM) integrated with the order book-based DEX on XRP Ledger.
XRPL AMM Technical Features and Updates 🧵
Last year, RippleX introduced the XLS-30d spec, a potential game-changer for the XRP Ledger.
Let's dive into the progress and possibilities: https://t.co/a6ptHrZnU6— RippleX (@RippleXDev) August 11, 2023
In November 2022, XLS-30d went live on devnet and is now undergoing testing. Since the devnet launch, the community has made significant strides in testing and development, according to a blog post by RippleX.
Tomiwabold OlajideOn the devnet, hundreds of AMM pools have been created, and many more wallets have been connected to test its functionality. AMM support has also been added by the RippleX team for three client libraries (xrpl.js, xrpl-py and xrpl4j) and the xrpl.org explorer.
What comes next?
According to the blog article, a new amendment proposal is expected soon, after which voting to bring XLS-30d to the XRPL mainnet will begin.
For the amendment to pass, at least 80% of the validator community must vote "yes," and that minimum level must be sustained for at least two weeks. If both of those prerequisites are met, the amendment proposal to add the XLS-30d to the mainnet will be approved.
Meanwhile, thorough testing of the XLS-30d protocol for core XRP Ledger stability is still ongoing.
Numerous possibilities
The XLS-30d protocol is designed as an XRPL-native protocol, allowing developers to easily integrate with the AMM and implement their own front-end trading and liquidity provision interfaces.
XLS-30d presents a novel continuous auction mechanism that incentivizes arbitrageurs to compete for the right to capture price disparities, thereby reducing impermanent losses.
That said, there are two primary use cases for XLS-30d AMM integration: creating new financial applications and integration into non-financial applications.
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