XRP Ledger Activates New Feature For USD Ripple Stablecoin
JAKARTA - XRP Ledger (XRPL), a blockchain platform from Ripple Labs, has just activated the Automated Market Maker (AMM) feature for USD Ripple (RLUSD) stablecoins. This feature allows users to buy and sell crypto assets more easily and efficiently.
This update officially took effect on Thursday, January 30, 2025, at 19:37 UTC or on Friday 31 January 2025, at 02:37 WIB. This decision was taken after it was approved by more than 80% of the validator or developer votes involved in the XRPL network.
Additional information, AMM is a system that allows trading of digital assets without requiring intermediaries such as conventional exchanges. With AMM, all transactions become faster and market liquidity increases.
XRPL has actually adopted the AMM feature since March 2024. However, the RLUSD, which was just launched in December 2024, was initially unable to participate due to restrictions on theback.
Overcoming Crackback Restrictions
Launching CoinSpeller, the leverage feature allows token publishers to withdraw assets related to illegal activities or that violate government policies. While it is important to maintain security and compliance, this feature turns out to be a barrier to RLUSD integration with AMM ensembles.
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To solve this problem, XRPL introduced an amendment called XLS-73d which implements the AMMClawback feature. With this update, token issuers can maintain compliance by recalling assets in AMM sets while still allowing trade and provision of liquidity. This amendment also received great support from the validators, with 91.43% of the votes in agreement.
Positive Impact For XRP
With the AMMClawback feature enabled, it is hoped that a collection of AMM XRP/RLUSD will be formed. This will certainly increase liquidity for both tokens. David Schwartz, CTO Ripple, even previously stated that RLUSD can be a catalyst for increasing XRP liquidity.
Currently, the price of XRP is trading at 3.10 US dollars or around IDR 50,220, an increase of 1.3% in the last 24 hours. This update marks a significant step in the XRPL ecosystem, in the hope of increasing Decentralized Finance (DeFi) activity and opening up new trading models on XRPL's decentralized exchange (DEX).