News View Non-AMP

Boost for XRP? XRPL AMMs Promise Increased Liquidity & Voting Power

Published by
Qadir AK

Are you eager to boost your XRP holdings? The XRPLedger has an exciting update for you – the introduction of Automated Market Makers (AMMs). This innovative addition allows XRP holders to earn passive income by contributing liquidity to pools.

Here, you not only get a share of earnings but also influence trading charges through your deposits.

Stedas, a crypto influencer, offers a guide on earning passive income through this. 

XLS-30 AMM Amendment

Prepare for a game-changer as the XLS-30 AMM Amendment takes center stage. This proposal aims to seamlessly integrate automated market maker functionality into the XRPL without the need for custom code. Expect benefits like increased liquidity, improved price discovery, and reduced fees.

But keep in mind the potential market volatility and centralization risks. Currently, the amendment is undergoing a crucial voting process for integration into the XRPL Mainnet, expected in Q1 2024.

Also Read: Bitcoin Ethereum And XRP Price Prediction For Coming Week!

Added Features

LP Tokens represent shares of these pools. Anyone can create or deposit assets into an AMM using the newly introduced XLS-30D Amendment. This amendment brings new transaction types, voting mechanisms for fees, and a continuous auction system, aiming to mitigate impermanent loss by distributing fees.

The AMM seamlessly interacts with XRPL’s DeX, ensuring users have access to a dynamic liquidity pool through the decentralized exchange.

Ripple Lawsuit and AMM Activation

As we await the integration of AMMs into the XRPL Mainnet, a shadow looms over Ripple – the SEC v. Ripple lawsuit. The upcoming deadline on March 22 might impact XRP’s price due to Ripple’s significant holdings. Yet, the introduction of AMMs is poised to bring positive effects to both XRP and Ripple, with activation expected by the same deadline.

Coinpedia earlier reported Ripple’s CTO, David Schwartz eagerness to utilize AMMs for institutional payments, benefiting from the liquidity they provide on the DEX to facilitate smoother transactions. 

Amid discussions about earning passive income through the XRP Ledger AMM, Schwartz explained that it requires trading XRP for claims against AMM pools, not just holding. This aims to address myths about DeFi and to promote realistic expectations. Schwartz also emphasized individual control over assets, rejecting calls for burning excess XRP from escrow as it should remain the owner’s decision.

Read More: Will XRP Hit $1 This Year? Experts Predict Price Jump Post Ripple’s Legal Win

In a compelling X post, crypto expert WrathofKahneman likens earning through XRPL AMMs to passive income, drawing parallels with real estate investments and rentals. However, a note of caution echoes – participants should steer clear of expecting guaranteed profits.

XRP Price Predictions

Even amid regulatory uncertainties and the ongoing lawsuit, XRP’s price remains resilient above the critical $0.60 level. Technical indicators hint at a potential correction in the near term, with support levels around $0.5553. In this bullish scenario, XRP could reclaim the $0.6293 level, paving the way for further upward momentum. The ultimate pinnacle awaits at the 2024 peak of $0.6685.

Gear up, XRP enthusiasts! The XRPLedger is ushering in a new era of possibilities with AMMs, and the excitement is contagious. We’re excited – are you?

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Sam Bankman-Fried Moved to Terminal Island, Home to Infamous Inmates

FTX founder Sam Bankman-Fried was moved to the low-security Federal Correctional Institution Terminal Island in…

April 19, 2025

JAN3 CEO Exposes the Big Crypto Illusion: “Cheap Coins” Could Be a Costly Mistake!

Bitcoin advocate and JAN3 CEO Samson Mow has issued a strong warning for crypto investors,…

April 19, 2025

XRP Price Analysis Today : Golden Cross Points to Potential Breakout

The XRP Price dropped by 16.4% over the last 30 days, with a 1.9% decline…

April 19, 2025

Will Pi Network & Mantra Restore Investor Confidence? Will PI & OM Prices Recover?

The crypto markets have gained some momentum since the start of the week, which has…

April 19, 2025

Kadena Price Prediction 2025, 2026 – 2030: Will KDA Price 3X This 2025?

Story Highlights The price of the Kadena token is . The Kadena price could reach…

April 19, 2025

Is Ethereum About to Crash? Peter Brandt Predicts Drop to $800

Veteran trader Peter Brandt has surprised the community with his bold prediction for Ethereum. He…

April 19, 2025