- XRPL recently embraced AMM to catalyze liquidity and trading on its platform.
- Before the feature could take off, the new AMMs are experiencing serious issues.
- Ripple developers are cautioning against using the new AMMs for the time being.
The XRP Ledger (XRPL) recently took a major step towards expanding its DeFi ecosystem by launching its new Automated Market Markers (AMMs). The new addition aimed to unlock additional avenues of network liquidity and trading for developers and users.
Yet, as anticipation reached a fever pitch, technical issues emerged, raising concerns about the new feature.
Ripple Devs Identify a Serious Problem
RippleX, the development arm of Ripple, cautioned users not to use the newly launched AMM pools on the XRP Ledger, citing technical issues affecting the new feature.
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In an official notice, Ripple developers flagged a major discrepancy in several AMM pools on the XRP Ledger, which caused transactions to be processed incorrectly. According to the devs, the glitch affected how the DEX payment engine routed liquidity through AMM pools and order books.
As a precaution, RippleX suggested refraining from depositing new funds into AMM pools to avoid further complications. The developers also advised users with LP tokens in AMM pools to redeem them until the issue is resolved.
Ripple Developers have assured that they are working to resolve the issue alongside community participants. At press time, RippleX announced they were reviewing a proposed fix with the community.
For extra added security, DailyCoin urges users to prioritize their safety and stay up to date with authorized communication from Ripple developers. Avoid clicking unverified links and ask for help from officials.
On the Flipside
- Previously, the XRPL relied solely on manual market making and central limit order books for liquidity.
- While AMMs have proven successful on other blockchains, the XRPL AMM is still in its early stages. It remains to be seen how it will perform in the long term.
- While AMMs offer potential benefits, they introduce new risks for users. Unlike traditional order books, AMMs rely on algorithms susceptible to manipulation or unforeseen vulnerabilities.
Why This Matters
XRPL’s adoption of an AMM for its DEX platform marked a significant milestone. However, encountering such issues can cast doubt on the feature and impact stakeholders’ confidence. Still, Ripple’s prompt response to the issue is commendable and positions the company to uphold its reputation.
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More on XRPL’s new AMMs:
How XRP Ledger’s New AMM Makes Crypto Trading Easier Than Ever
