XRP passive income opportunity as XRPL AMM finally launches live with 121 XRP liquidity pools

The long-awaited Automated Market Maker (AMM) functionality on the XRP Ledger blockchain has finally gone live, opening up passive income opportunities for the XRP army.

The RippleX team announced the launch of the XRPL AMM yesterday, March 22nd, recognizing it as an evolution of the native decentralized exchange on XRPL.

1/ The XLS-30 AMM is now live on #XRPLedger!

XLS-30 is an evolution of XRPL's native DEX and introduces a unique approach to on-chain market making and liquidity. Find out more here: https://t.co/boW1wX0GDi

— RippleX (@RippleXDev) March 22, 2024

Previously it was XRPL DEX Liquidity was based solely on central limit order books and manual market making. With this latest integration, a non-custodial AMM has been integrated as a core component of the XRPL DEX.

The benefits include that it offers liquidity providers a lucrative way to earn returns while reducing slippage. This is particularly helpful when trading less frequently traded tokens.

Considering its utility, the RippleX team noticed that XLS-30, the change that brought AMM functionality, marks a pivotal moment in the ongoing development of XRPL. Furthermore, they see it as a first attempt to improve the broader DeFi ecosystem.

Additionally, XLS-30 allows developers to integrate with the AMM and create their own interfaces for trading and providing liquidity.

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In particular, members of the XRP community have enthusiastically welcomed the launch of this liquidity provision service on the XRP blockchain.

Reactions from influential community figures

Ripple CTO David Schwartz expressed his admiration for the integration, emphasizing that it came after almost two years of diligent efforts.

“This begins a longer journey from today’s initial launch to future growth milestones for users, traders, developers, market makers and more,” Schwartz added.

After about 2 years the time has finally come – the AMM is live on the XRPL mainnet! This begins a longer journey from today's initial rollout to future growth milestones for users, traders, developers, market makers and many more. I look forward to the journey with all of you in the XRPL… https://t.co/JZjxloxo06

— David “JoelKatz” Schwartz (@JoelKatz) March 22, 2024

In particular, the XLS-30 amendment, which led AMM to XRPL, has been up for vote since last year. In February, the change reached the required consensus from XRPL validators.

However, due to a discovered error, the change was made soon lost the consensus Until the situation was resolved and the AMM launched on Friday, March 22nd.

Anodos Finance founder Panos Mekras, one of the leading proponents of AMM, expressed Thank you to everyone who contributed to making this AMM a reality.

More than 100 liquidity pairs created

Following the launch, crypto market participants have created various automated market maker pools for XRP. Accordingly Data According to XRP explorer XRPScan, 121 liquidity pools have been created at press time.

Emi Yoshikawa, vice president of strategic initiatives at Ripple, expressed shock at X at the large turnout.

Over 100 liquidity pools have already been created… 😲

Over 100 liquidity pools have already been created! #XRPLAMM https://t.co/rDfLe8MF3K pic.twitter.com/kuPXDTMrwm

— Emi Yoshikawa {X} (@emy_wng) March 23, 2024

At press time, the largest liquidity pool is for XRP USDC/XRP pair, with liquidity of $72.1K and trading volume of $43.5K. In this pool, 675 transactions and 220 swaps were carried out by 322 contributors. Other running pools include SOLO/XRP, BTC/XRP, FLR/XRP and USDT/XRP.

An XRP enthusiast has revealed their income from the AMM pool. The This essentially highlights the much-discussed passive income potential of the XRP AMM.

XRP price reaction

What is noteworthy is that XRP is yet to see any significant impact from the introduction of this crucial functionality on its blockchain. At press time, XRP has fallen 2.7% in the last 24 hours, putting the price at $0.6135.

Also some community figures have argued that the value of XRP could fall by 80% to $0.1 after the launch of the AMM.

Disclaimer: This content is for informational purposes and should not be considered financial advice. The views expressed in this article may contain the personal opinion of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic assumes no liability for any financial losses.

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