2024

David Vance

when

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<p lang="en-GB" xml:lang="en-GB">Ripple's Chief Technology Officer David Schwartz has proudly announced on the Twitter/X social media network that the <a href="https://u.today/ripple-cto-breaks-silence-on-amm-amendment-delay-details">XLS-30 AMM</a> (automated market maker) that Ripple has been working on has been finally launched on the XRP Ledger mainnet.</p>
<p lang="en-GB" xml:lang="en-GB">He has also warned users to be careful when beginning trading via the AMM, sharing the necessary guidance.</p>
<blockquote>
 <p lang="en" dir="ltr">After ~2 years, the day has finally arrived – the AMM is live on XRPL mainnet! Thus begins a longer road from today’s initial rollout to future growth milestones for users, traders, devs, market makers and many more. Looking forward to the journey alongside all of you in the XRPL… <a href="https://t.co/JZjxloxo06">https://t.co/JZjxloxo06</a></p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1771284874931925459?ref_src=twsrc%5Etfw">March 22, 2024</a>
</blockquote> 
<h2 id="word-about-amm-on-xrp-ledger">Word about AMM on XRP Ledger</h2>
<p lang="en-GB" xml:lang="en-GB">In a recent blog article, RippleX devs have revealed the rollout of the non-custodial XLS-30 AMM into XRP Ledger, boasting that from now on the liquidity and trading paradigm on the network will undertake a dramatic change.</p>
<p lang="en-GB" xml:lang="en-GB">The AMM was built for the XRPL DEX (decentralized exchange), and the new integration will allow making returns for those who add liquidity to the AMM. The automatic market maker also provides a decrease in slippage when traders work with the long tail of tokens. Developers will be able to use XLS-30 to integrate with the AMM and make their own interfaces for trading and liquidity provision.</p>
<h2 id="ripple-cto-s-warning-to-traders">Ripple CTO's warning to traders</h2>
<p lang="en-GB" xml:lang="en-GB">David Schwartz issued <a href="https://u.today/ripple-cto-issues-key-warning-to-crypto-community-what-it-pertains-to">a word of caution</a> to traders who intend to use an AMM on the DEX. He stated that should they make a single-sided deposit into an AMM that has lower liquidity than the deposit itself, then these traders will take a loss in the deposit process. He also warned that should traders see a large amount of slippage on the deposit, they should consider using other options than a single-sided deposit.</p>
<blockquote>
 <p lang="en" dir="ltr">CAUTION: If you make a single-sided deposit into an AMM that doesn't have significantly more liquidity than the size of your deposit, you will take a loss in the deposit process.Whatever tool you're using typically warns you about this loss as a report of "slippage". If you see…</p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1771333126196973612?ref_src=twsrc%5Etfw">March 23, 2024</a>
</blockquote> 
<p lang="en-GB" xml:lang="en-GB">Another warning made by the Ripple CTO says that a trader may also suffer a loss if their deposit is made into an AMM that was largely out of balance before the deposit was made. However, Schwartz pointed out that this should be a rare case since if an AMM stays out of balance for a long time, this means that everyone is missing an opportunity to make a profit.</p>
<p lang="en-GB" xml:lang="en-GB">Overall, according to Schwartz, the safest option is to deposit equal values of both assets traded by the AMM. If traders decide to use single-sided deposits after all, the AMMs they use should be “reasonably liquid.” The risk of these losses should decline, the CTO added, as AMM pools expand and more arbitrageurs begin to trade against the pools.</p>

Ripple CTO Makes Crucial Statement on Just Launched Ripple's AMM on XRPL

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