12 April, 2024

Liquidity Up – Ripple’s XLS-30 AMM Boosts Profits for Providers in Rippled 1.12.0

07 Sep, 2023

23 Nov, 2023

  • Ripple’s integration of XLS-30 AMM empowers liquidity providers with equitable profits on XRPL DeX.
  • The DeX upgrade bridges AMM and LOB for seamless trading.
  • XLS-30 AMM by RippleX sets the stage for the future of DeFi.

Ripple X recently made a significant announcement regarding the integration of the XLS-30 Automated Market Maker (AMM) specification into the latest version of rippled 1.12.0. This news, shared via Twitter, has generated a buzz in the cryptocurrency community.

Moreover, Krippenreiter, a rising social media influencer known for his insights on Distributed Ledger Technology (DLT) and a notable presence on Twitter, recently dropped a hint that has the crypto world abuzz. His tweet about the impending launch of rippled version 1.12, featuring the XLS-30 AMM, set for September 11, 2023, has amplified the anticipation manifold. This eagerly awaited release promises to bring significant enhancements to the XRPL decentralized exchange (DeX), sparking excitement and anticipation among the crypto community.

This development represents a crucial milestone for the XRPL decentralized exchange (DeX). Ripple X’s decision to merge the XLS-30 AMM spec into rippled 1.12.0 underscores its commitment to advancing the decentralized finance (DeFi) ecosystem within the XRPL.

The XLS-30 proposal, co-authored by Dr. Aanchal Malhotra, Head of Research at RippleX, and David Schwartz, CTO at Ripple, has gained attention since its last update on August 4, 2023. It aims to introduce non-custodial AMMs as an integral component of the XRPL DeX, a move that promises to redefine the DeFi landscape within the XRPL ecosystem.

What makes XLS-30 stand out is its innovative mechanism, designed to benefit liquidity providers. Unlike traditional AMMs, XLS-30 continuously auctions trading advantages to arbitrageurs while charging them fees. These fees are then distributed to liquidity providers, ensuring they receive a significant portion of the profits that would typically go to arbitrageurs. This unique approach aims to establish a fairer and more balanced DeX ecosystem.

Furthermore, XLS-30 introduces a spread on trades that alter token ratios within AMM pools, thereby increasing returns for liquidity providers. Governance rights within the AMM instances are also granted to the largest shareholders, giving them the authority to vote on the trading fees imposed by the instance. This approach fosters a sense of community ownership and participation.

Ripple’s integration of XLS-30 seeks to facilitate seamless interaction between the AMM-based and limit order book (LOB)-based DeX. This ensures that users have access to all order flows and liquidity on both platforms, with automated mechanisms prioritising the provision of the most favourable prices, considering both order books and AMMs.

As the release of rippled 1.12.0 with the XLS-30 AMM feature approaches, Ripple’s dedication to innovation and user-centric solutions promises to reshape the XRPL DeX landscape. These exciting developments position XRPL as a significant player in the world of DeFi, offering cryptocurrency enthusiasts worldwide a more accessible, equitable, and efficient trading experience.



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