Ripple Investors Attention: Critical Voting Has Started!

Ripple’s XRP Ledger Ripple X announced the proposed XLS-30 AMM replacement for XRP Ledger (XRPL), marking an important step forward in decentralized financial applications. The change is currently going through a voting process where the validator community will decide on its integration into the XRPL Mainnet. Here are the details…

Critical voting for Ripple has started

Described as the first of its kind, XLS-30 is built as a native protocol. It aims to enable asset trading in automated liquidity pools by bringing native AMM functionality to XRPL. One of its highlights is the Continuous Auction Mechanism, which is designed to encourage arbitrageurs to bid for false pricing opportunities. This mechanism aims to reduce the effects of non-permanent losses for liquidity providers.

Last year, the RippleX team proposed the XLS-30d technical specification to integrate a protocol-specific automatic market maker (AMM) with the orderbook-based DEX on the XRP Ledger. Since its release to Devnet in November 2022, the community has witnessed significant progress in testing and development. Devnet has seen hundreds of AMM pools created and numerous wallets have been connected to evaluate its functionality. Additionally, RippleX has included AMM support in three client libraries: xrpl.js, xrpl-py, and xrpl4j, and has also integrated it into the xrpl.org explorer.

What does XLS-30 mean?

The decentralized structure of XRP Ledger ensures that no single authority can dictate decisions for the network. For the XLS-30d change to be approved, at least 80% of the validator community must vote in favor and this consensus must persist for at least two weeks. If these conditions are met, the change will be integrated into the Mainnet. Developers can use the XLS-30d AMM integration for two primary use cases: building new financial applications and integrating into non-financial applications. The protocol provides a streamlined process for developers, eliminating the need for heavy work.

It also offers a unique auction mechanism to reduce impermanent losses, encouraging arbitrageurs to maintain stable volatility by bidding with near-zero trading fees. In practical applications, for example, if a user wants to purchase an NFT listed for a specific token but only owns a different token, AMM can facilitate the exchange with an optimized transaction price. This seamless integration can significantly improve the user experience, especially for illiquid tokens.

CTO also expressed his excitement

Meanwhile, Ripple’s CTO expressed his excitement that the XLS-30 AMM is now available for voting on the mainnet. In a recent tweet, Ripple’s Chief Technology Officer David Schwartz revealed one of his favorite XRP Ledger (XRPL) features. This announcement comes after the RippleX development team announced the bid change for the XLS-30 Automated Market Maker (AMM) on XRPLedger. The team added that the amendment is now ready for voting. In response, Schwartz excitedly noted that his favorite XRPL feature—XLS-30 AMM—was up for vote on the mainnet. While XRP community members asked, Ripple CTO did not explain what makes the XLS-30 AMM one of his favorites for XRPL.