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XRPL Amendment to Allow Creation of XRP/RLUSD AMM Pool Gains Validator Approval
XRPL Amendment to Allow Creation of XRP/RLUSD AMM Pool Gains Validator Approval
January 17, 2025
XRP Ledger XRPL
An amendment to the XRP Ledger (XRPL) has received validator approval, paving the way for the creation of an XRP/RLUSD automated market maker (AMM) pool. This amendment has been approved by the XRPL community as part of efforts to increase XRP liquidity and promote wider adoption of Ripple’s stablecoin.
AMM Clawback Amendment Receives Validator Approval
The AMM Clawback amendment, which recently gained over 85% approval from XRPL validators, will specifically allow the use of tokens with a clawback feature, such as RLUSD, in AMM pools. This comes ten months after XLS-30D was passed in March last year, enabling the creation of AMM pools on the XRPL.
Currently, tokens with the clawback feature are not included in AMMs. The clawback function, which was approved in February 2024, is crucial for regulatory compliance, especially for banks, as it allows issuers to retrieve tokens under specific circumstances, such as criminal activities.
The amendment introduces two key changes. 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 retrieve tokens deposited in AMM pools. These changes lay the foundation 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 surpassed 85% approval, with 30 validators supporting it and only five opposing. If this rate holds for the next two weeks, the amendment will officially come into effect on January 30, 2025. According to Vet, anyone will be able to create AMM pools with RLUSD once the amendment becomes active.
XRPL AMM Clawback Amendment | XRP Scan
RLUSD Could Boost XRP Liquidity
RLUSD, which was launched in December 2024, has gained traction on various exchanges, although it has not yet been 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. However, the integration of this stablecoin into AMM pools represents a major step towards achieving this goal.
Panos Mekras, co-founder of Anodos Finance, has expressed excitement about the upcoming XRP/RLUSD AMM pools. Mekras urged community members to prepare to provide liquidity and utilize 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 https://t.co/yDfVgvZWSw https://t.co/iRBxUaMJXJ
— Panos {X} (@panosmek) January 17, 2025
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