RippleX, the open platform that enables developers to build through the XRP Ledger, has announced that the AMM Devnet is live and ready to use, marking a big milestone for XRPL.
Automated market makers (AMMs) are utilized in decentralized finance (DeFi) and allow trading in a permissionless way through the use of liquidity pools.
Developers would be able to test the AMM, build applications and ask questions or provide feedback on their observations. While leveraging the liquidity provision, swap and auction features, developers can also integrate their apps directly with the AMM to power token interactions and trading interfaces.
Earlier in 2022, the RippleX team proposed the XLS-30d technical specification to build a protocol-native automated market maker (AMM) integrated with the orderbook-based DEX on XRP Ledger.
XLS-30d introduces a native AMM protocol to XRPL and a novel auction mechanism that rewards arbitrageurs while lessening the impact of impermanent losses faced by liquidity providers (LPs). The AMM would be less vulnerable to front-running because XRPL leverages a federated consensus.
The devnet is now available for testing, which is a big step forward.
What's next
To adopt XLS-30d to the XRPL mainnet, RippleX intends to propose an amendment following extensive testing and community feedback. The proposal will next be examined and evaluated by the XRPL validator community for its technical merits.
A functioning AMM protocol as described in XLS-30d will go live on the XRP ledger if more than 80% of the validators approve the proposal and approval stays at or above 80% for at least two weeks.