Ripple has rolled out its new automated trading system called the XLS-30 AMM on the XRP Ledger’s main network. Ripple’s Chief Technology Officer, David Schwartz, made the announcement proudly on X.
The XLS-30 AMM is a decentralized exchange platform that promises to shake up trading and liquidity on the XRP Ledger. This non-custodial system allows users to earn rewards by providing trading funds to AMM pools. It also aims to reduce slippage (price movements) for trades involving lesser-known cryptocurrencies.
While the launch is a big deal, Schwartz cautioned users about potential risks when using the AMM. He warned that depositing only one cryptocurrency into a low-liquidity AMM pool could result in losses during the deposit process. Schwartz advised traders to consider other options if they see large slippage on deposits.
The Ripple CTO emphasized that the safest bet is to deposit equal values of the two cryptocurrencies traded by the AMM pool. However, he noted that as the AMM pools grow and attract more traders, the risk of losses should decrease.
Developers can now integrate XLS-30 into their apps, creating custom interfaces for trading and liquidity provision on the XRP Ledger. This launch marks an exciting new chapter for Ripple and the broader XRP community.
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