Veteran digital assets platform Stellar (XLM) activated a crucial update that is a new page in the platform's liquidity ecosystem progress.
Native AMM functionality goes live on Stellar (XLM)
According to the official statement shared by Stellar Development Foundation (SDF), a non-profit that addresses Stellar-based blockchain solutions, the blockchain has upgraded to its Protocol 18 version.
Protocol 18 upgrade complete! This is a big one. A huge thanks to the Stellar ecosystem for your support, feedback, and cooperation throughout the Protocol 18 process! https://t.co/hnBiwJAfXW— Stellar (@StellarOrg) November 3, 2021
As such, Stellar becomes the only Layer 1 platform to activate such functionality. Now its enthusiasts can create liquidity pools without smart contracts and high gas fees.
Stellar customers can leverage its products and interfaces and inject the liquidity necessary for cross-asset conversion.
All trades initiated against Stellar's AMM-powered liquidity pools will be executed at the best rate possible to maximize the benefits of clients and liquidity providers.
Stellar expands its bet on DeFi
Justin Rice, VP of Ecosystem at SDF, stresses the crucial importance of this functionality for the entire ecosystem of Stellar-based decentralized applications (dApps):
The introduction of AMM functionality may prove to be a defining moment for Stellar. (…) We're excited at the potential their products and services have to boost network liquidity, make liquidity provision more inclusive, and further Stellar's ability to improve equitable access to the world's financial infrastructure.
Initially, Stellar's liquidity pools will retain negligible 0.3% fees from liquidity providers.
As covered by U.Today previously, in 2021, Stellar Development Foundation is laser-focused on experiments with DeFi-specific tools. In July 2021, a new smart contract type was introduced for this blockchain.
Also, Stellar's interest in DeFi was highlighted by the activation of the Stellar-Polygon bridge on Sept. 23, 2021.