Ripple Releases Exciting Statement on XRP Ledger AMM

Wed, 27/03/2024 – 10:33

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In a move that has ignited anticipation within the XRP cryptocurrency community, Ripple developers have announced a piece of exciting information regarding the XRP Ledger’s Automated Market Maker (AMM).

RippleX stated in a new tweet that the AMM bug fix is now available for review on GitHub and will be included in the 2.1.1 version of rippled. RippleX teased that it would soon publish a blog post with more details regarding what happened and next steps.

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Vet, an XRPL dUNL validator, shares excitement about the AMM amendment’s progress. In a tweet, he highlighted that the hotfix for the XRP Ledger Automated Market Maker is now public, and rippled 2.1.1 is proposed.

In the interim, users are advised not to deposit into the AMM and withdraw their liquidity.

The AMM Amendment to the XRP Ledger went live on March 22, 2024. However, a community member immediately discovered a mismatch in a few AMM pools, indicating that transactions were not completed as expected.

A team comprised of RippleX, Orchestra Finance, tequ and other members of the XRP Ledger community worked fast to uncover the root of the issue, which concerned how the DEX payment engine routes liquidity through AMM pools and order books in some complex payment path scenarios.

The flaw impacts how the DEX payment engine transfers liquidity through AMM pools and order books in some complex payment path scenarios that did not perform as planned.

A fix has been developed and is now being reviewed, tested and is ready for release as soon as possible. The fix necessitates an amendment to the XRP Ledger protocol, which must be voted on by network validators and maintain over 80% support for the standard two-week period before activation.

Until the fix is implemented on the network, users should redeem LP tokens rather than deposit new funds into AMM pools.

Since its inception, XRP Ledger has featured a Central Limit Order Book Decentralized Exchange (CLOB DEX). However, many other blockchains have predominantly shifted toward facilitating currency exchanges via Automated Market Makers (AMMs), typically employing a “constant product” algorithm.

With the AMM amendment, Automated Market Makers have been introduced to complement the CLOB DEX on XRP Ledger.

The cryptocurrency community is eagerly awaiting additional details from RippleX regarding the XRP Ledger AMM amendment. 

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