XRPL Amendment to Allow Creation of XRP/RLUSD AMM Pool Gains Validator Approval
An amendment to the XRP Ledger (XRPL) has been approved by validators, paving the way for the creation of an XRP/RLUSD automated market maker (AMM) pool. The XRPL community has given the green light to this significant change in order to increase XRP liquidity and promote the wider adoption of Ripple’s stablecoin.
The approved amendment, known as the AMM Clawback Amendment, has received over 85% approval from XRPL validators. It specifically enables tokens with a clawback feature, such as RLUSD, to be used in AMM pools. This amendment comes ten months after the XLS-30D amendment was passed last March, allowing the creation of AMM pools on the XRPL.
Currently, tokens with the clawback feature are not eligible for AMMs. The clawback function, which was approved in February 2024, is crucial for regulatory compliance, especially for banks, as it allows issuers to reclaim tokens under specific circumstances, such as criminal activities.
The amendment introduces two key modifications. Firstly, it allows clawback-enabled tokens to interact with AMMs. Secondly, it updates the rules for token deposits in AMMs, ensuring that frozen tokens cannot be deposited.
In addition, a new transaction type called AMMClawback will enable issuers to reclaim tokens deposited in AMM pools. These changes set the stage for the creation of AMM pools featuring RLUSD, Ripple’s stablecoin, and other tokens like XRP.
The amendment gained momentum when it received 29 votes in favor and six against, achieving an approval rate of over 82%, as confirmed by prominent dUNL validator Vet. With 80% approval required for two consecutive weeks, the proposal was already on track to pass.
Interestingly, the latest data suggests that it has now exceeded 85% approval, with 30 validators in support and only five opposing. If this rate holds for the next two weeks, the amendment will officially take effect on January 30, 2025. Vet states that anyone will be able to create AMM pools with RLUSD once the amendment becomes active.
RLUSD Could Boost XRP Liquidity
Since its launch in December 2024, RLUSD has gained popularity on various exchanges, although it has yet to be listed on major platforms like Binance and Coinbase.
Ripple’s CTO, David Schwartz, and others have noted that RLUSD could significantly increase XRP liquidity if fully adopted. The integration of the stablecoin into AMM pools is a major step towards achieving this goal.
Panos Mekras, co-founder of Anodos Finance, expressed excitement about the upcoming XRP/RLUSD AMM pools. Mekras encouraged community members to prepare for providing liquidity and utilizing the swap features once the amendment goes live. Anodos Finance will facilitate these activities through its platform.
Are you ready for RLUSD AMM pools? The anticipation for XRP/RLUSD is high. Get ready to provide liquidity and swap on [website link].
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