The Expected Update in the Ripple Network is Open to Voting

The Ripple (XRP) community has begun voting on a proposed amendment that would introduce XLS-30, the first automated market maker (AMM) protocol developed as a native feature of the XRP Legder (XRPL). XLS-30 is designed to enable the trading of all assets in automatically adjusted liquidity pools through a new perpetual auction mechanism. In order for the feature to be implemented, 80% of the votes must be accepted.

According to the developers, XLS-30 is an innovation that aims to bring the advantages of decentralized finance (DeFi) to XRPL, which is known for its low fees, fast results feature and high scalability. The protocol allows anyone to create or participate in liquidity pools that support all assets launched on XRPL, such as XRP, IOUs, stablecoins or NFTs. Liquidity providers (LPs) can earn fees from traders who exchange assets in pools.

Unlike other AMMs that use fixed product or fixed sum formulas, XLS-30 uses a perpetual auction mechanism that dynamically adjusts the prices and quantities of assets in the pool based on market demand and supply. This mechanism encourages arbitrageurs to bid on mispricing opportunities and balances pool rates efficiently, resulting in lower slippage and higher capital efficiency for both investors and LPs.