XRP Ledger Boosts Liquidity: Stablecoin RLSUD Joins AMM Pools

The XRP Ledger, a decentralized and open-source blockchain platform, has recently implemented a significant upgrade that aims to enhance liquidity and security. The upgrade, which went live after attaining a validator consensus of 91.43%, introduces new policies governing its Automated Market Maker (AMM) pools.

The primary objective of this upgrade is to facilitate the creation of AMM pools for stablecoin RLSUD, a move that is expected to significantly enhance liquidity for the remittance token and enrich trading opportunities within the XRP Ledger Decentralized Exchange (DEX).

Automated Market Makers play a crucial role in decentralized finance (DeFi) by enabling individuals to trade without relying on traditional order books. The XRP Ledger unveiled the AMM feature in March 2024, allowing liquidity providers to earn rewards on selected pools. However, specific limits previously hindered Ripple’s stablecoin from participating in these pools due to the clawback functionality.

The clawback functionality, which went live earlier in 2024, allows token issuers to recover tokens in scenarios involving criminal activities, regulatory obstacles, or dealings with sanctioned players. The recent upgrade addresses these limitations, paving the way for Ripple’s stablecoin to participate in AMM pools and benefit from the enhanced liquidity and trading opportunities.

This upgrade is a significant step forward for the XRP Ledger, as it continues to evolve and adapt to the changing landscape of decentralized finance. By enhancing liquidity and security, the platform aims to attract more users and foster a more vibrant ecosystem for decentralized trading.