RippleX, its development arm, has discovered a discrepancy in some automated market maker (AMM) pools that resulted in transactions not being able to be executed properly.
The engineering team is working with community participants to resolve the issue.
At the same time, RippleX has recommended its users not to deposit new funds into AMM pools for the time being. It promised to provide timely updates to the community.
Important milestone for XRP Ledger
After two years, AMM went live on the XRP Ledger mainnet on March 22nd. According to David Schwartz, chief technology officer at Ripple, the AMM marked the start of a “longer journey” from initial adoption to future usage milestones.
As Schwartz noted, the launch of the AMM feature is a “significant moment” for XRP Ledger as it would allow the DeFi ecosystem to expand and attract more liquidity.
The AMM model allows forgoing traditional order books by creating liquidity pools that determine asset prices based on certain algorithms. Key features of XRPL’s AMM include aggregated liquidity, continuous action mechanism, and unilateral liquidity provision.
Main use cases
In his recent blog post, Schwartz outlined numerous use cases for the AMM feature: from financial applications (trading and yield farming) to various non-financial use cases (e.g. seamless asset swaps).
At the same time, Ripple's CTO has warned the community that the transactions are “novel and complex,” which is why he recommends users not be afraid to submit bug reports and make their own suggestions.
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