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

The post Boost for XRP? XRPL AMMs Promise Increased Liquidity & Voting Power appeared first on Coinpedia Fintech News

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?