David

April

James

<p class="is-style-lead"><a href="https://crypto.news/ripples-social-activity-and-price-hike-as-bullish-news-emerge/" rel="noopener noreferrer nofollow">Ripple</a> chief technology officer <a href="https://crypto.news/ripple-cto-discusses-keeping-xrp-in-amm/" rel="noopener noreferrer nofollow">David Schwartz</a> advocates for integrating an automated market maker (AMM) feature with the <a href="https://crypto.news/palau-to-pilot-usd-backed-stablecoin-psc-on-xrp-ledger/" rel="noopener noreferrer nofollow">XRP Ledger (XRPL)</a> to enable the creation of decentralized exchanges (DEXs) on the XRPL.&nbsp;</p>
<p>Schwartz described AMMs as a fascinating aspect of decentralized finance in a <a href="https://twitter.com/joelkatz/status/1710200288647295121?s=46&amp;t=TgjDKnTfjRbndDwIp3uJlA" target="_blank" rel="noopener noreferrer nofollow">post</a> on social media. However, implementing this feature should only proceed with the consensus of the XRPL community, he explained.</p>
<p>The XRPL operates as a decentralized blockchain network, facilitating efficient and secure transactions for the XRP cryptocurrency.</p>
<p>Unlike conventional systems, XRPL employs the Ripple Protocol Consensus Algorithm (<a href="https://ripple.com/files/ripple_consensus_whitepaper.pdf" target="_blank" rel="noopener noreferrer nofollow">RPCA</a>) for consensus, ensuring quick transaction processing and scalability.</p>
<p>It provides a practical foundation for developing decentralized applications (<a href="https://crypto.news/learn/what-is-a-dapp/" rel="noopener noreferrer nofollow">dApps</a>), while the <a href="https://crypto.news/learn/what-is-an-automated-market-maker-amm/" rel="noopener noreferrer nofollow">AMM</a> is a <a href="https://crypto.news/2b-of-crypto-assets-wash-traded-on-decentralized-exchanges-report-shows/" rel="noopener noreferrer nofollow">decentralized exchange</a> solution that relies on a mathematical formula to establish asset prices.&nbsp;This formula considers the supply and demand of the assets involved, adjusting prices accordingly.</p>
<p>You might also like: <a href="https://crypto.news/sec-and-ripple-seek-extension-for-filing-unredacted-cross-motions/" rel="noopener noreferrer nofollow"> SEC and Ripple seek extension for filing unredacted cross-motions </a></p>
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   <p lang="en" dir="ltr">AMMs are the weird defi trick everyone's talking about.</p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1710200288647295121?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 6, 2023</a>
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<p>When asked about the timeline for AMMs becoming active on XRPL after governance voting by a community member, Schwartz responded that if the majority supports the amendment, the changes could be implemented in as little as two weeks.</p>
<p>Schwartz highlighted that, as far as he knows, no validators currently support the majority vote. The AMM feature was introduced with the release of Ripple version 1.12.0, which also introduced the potential clawback feature.&nbsp;</p>
<p>The team says that incorporating an AMM doesn’t just involve adding a new trading engine; it will also facilitate integration with the XRPL decentralized exchange.</p>
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   <p lang="en" dir="ltr">In general though, validators shouldn't vote YES individually. The community should make a decision and then validators should nearly all vote YES when they believe the community is on board and enough nodes support the change.<br><br>The amendment voting process is intended to…</p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1710202072052969841?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 6, 2023</a>
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<p>Despite the feature’s importance, Schwartz cautioned validators against voting independently for these changes. He stressed the need for the community to reach a consensus first. Validators should vote ‘YES,’ overwhelmingly when they observe that the community agrees and sufficient nodes endorse the adjustment.</p>
<p>In April, Schwartz also urged <a href="https://twitter.com/joelkatz/status/1650927864160845826?s=46&amp;t=TgjDKnTfjRbndDwIp3uJlA" target="_blank" rel="noopener noreferrer nofollow">caution</a> for those considering investing in XRP through an AMM. He outlined three key reasons for this caution.&nbsp;</p>
<p>Firstly, Schwartz highlighted the exposure to other digital assets within the AMM, explaining that price fluctuations of one asset can impact the value of all other assets in the pool, including XRP.&nbsp;</p>
<p>While acknowledging the usefulness of AMMs for trading, Schwartz emphasized the need for investors to thoroughly research and understand the potential risks before choosing to hold XRP within an AMM.&nbsp;</p>
<p>Additionally, he pointed out the limited potential for significant gains as another risk. Despite AMMs providing liquidity for XRP and other tokens, there’s no guarantee of substantial price gains for XRP.</p>
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   <p lang="en" dir="ltr">Probably between 1/3 and 1/4. There are really only three reasons not hold your XRP in an AMM:<br>1) There could be an implementation bug in the AMM code that causes you to lose money. A low risk, but non-zero. …</p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1650927864160845826?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 25, 2023</a>
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<h2 class="wp-block-heading" id="ripple-scores-another-victory-over-an-sec">Ripple scores another victory over an SEC</h2>
<p>In related news, judge Analisa Torres has denied the U.S. Securities and Exchange Commission’s (SEC) <a href="https://www.courtlistener.com/docket/19857399/securities-and-exchange-commission-v-ripple-labs-inc/" target="_blank" rel="noopener noreferrer nofollow">motion</a> to appeal its loss against Ripple Labs.</p>
<p>The SEC sought to appeal the partial ruling in Ripple’s favor, declaring that retail XRP token sales didn’t meet the legal definition of a security.&nbsp;</p>
<p>However, Judge Torres <a href="https://crypto.news/xrp-rallies-5-after-court-rejects-secs-request-to-appeal-ripple-ruling/" rel="noopener noreferrer nofollow">rejected</a> the SEC’s motion, stating they failed to prove controlling legal questions or substantial differences of opinion. A trial date is set for April 23, 2024. Ripple execs and the <a href="https://crypto.news/senator-kennedy-jr-confronts-secs-gary-gensler-on-crypto-regulation/" rel="noopener noreferrer nofollow">Gary Gensler</a>-led SEC will meet in person for at least an hour to discuss a settlement before the final pretrial conference.</p>
<p>Judge Torres had found the SEC’s appeal wouldn’t significantly expedite the case’s resolution. This ruling should mark a crucial win for Ripple, reaffirming the validity of the previous ruling.</p>
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   <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/XRPCommunity?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#XRPCommunity</a> <a href="https://twitter.com/hashtag/SECGov?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#SECGov</a> v. <a href="https://twitter.com/hashtag/Ripple?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Ripple</a> <a href="https://twitter.com/hashtag/XRP?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#XRP</a> BREAKING: Judge Torres has DENIED the SEC’s Motion to File an Interlocutory Appeal. <a href="https://t.co/czEIz93Vfn" target="_blank" rel="noopener noreferrer nofollow">https://t.co/czEIz93Vfn</a></p>— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) <a href="https://twitter.com/FilanLaw/status/1709343608338309383?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 3, 2023</a>
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<p>Read more: <a href="https://crypto.news/judge-orders-ripple-and-sec-to-schedule-possible-settlement-conference/" rel="noopener noreferrer nofollow"> Judge orders Ripple and SEC to schedule possible settlement conference </a></p>

Ripple CTO urges AMM integration into XRP Ledger

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