- The fixAMMv1_1 amendment on the XRPL has attained 82% consensus with 29 “yes” and six “no” after entering the 14-day activation window.
- If this level of consensus is maintained in the next two weeks, the amendment will be implemented, subjecting the Automated Market Maker (AMM) functions to changes.
The latest report from the XRP Ledger’s (XRPL) official X handle confirms that the amendment under the code fixAMMv1_1 has entered the 14-day activation window. This implies that it is about a few weeks away from full implementation when decentralized trading will be directly unlocked on the XRPL.
Amendment fixAMMv1_1 is now in 14 day activation window: https://t.co/acVszQ6P7U pic.twitter.com/XYpyQZnvyz— XRPScan (@xrpscan) September 10, 2024
XRPL Amendment and Background of fixAMMv1_1
XRPL describes its amendment as a proposal to subject its existing code or protocol governing a specific function on the Ledger to change. According to its blog post, the advantage of this lies in the ability to fix bugs and improve or introduce new features. However, validators must reach a consensus before an amendment can occur.
According to our research, the amendment code fixAMMv1_1 optimizes the Automated Market Maker (AMM) functions to facilitate decentralized trading by adjusting prices automatically through the interplay of demand and supply. The result is fascinatingly crucial for liquidity enhancement and the efficiency of trade on the XRPL.
Earlier this year, an XLS-30 amendment that sought to add AMM to the XRPL was passed after receiving an incredible 85.71% consensus. After attaining this consensus, the amendment was reportedly implemented on the mainnet on February 14. Prior to this, the community had lamented over the delay in the voting process. However, some members dismissed these concerns and claimed all amendments take a similar governance timeline.
Details About the fixAMMv1_1 amendment
At press time, the fixAMMv1_1 amendment had reached a validators’ consensus of 82.86% with 29 participants voting “yes” against the six stakeholders who voted “no”. Some of the famous validators who voted “yes” are Ripple.com, XRPscan.com, Bitrue.com, onxrp.com, etc.
According to experts, this technical exercise transcends a mere upgrade as it represents a strategic move to make XRPL more competitive in the Decentralized Finance (DeFi) space. The implementation of this amendment and the addition of the expected features would make it more attractive for both retail and institutional investors.
It is important to note that the XRPL had, since inception, included a central limit order book decentralized exchange (CLOB DEX). Meanwhile, other blockchains have moved towards the AMM to eliminate the need to manually update exchange rates. According to them, resorting to this would, in the long run, position the Ledger ahead of competitors with its incredible features giving it the edge.
An excerpt of the post reads:
The AMM amendment adds Automated Market Makers that are designed to synergize with the CLOB DEX to bring traders the flexibility to provide liquidity in whatever method suits them best. Currency trades can automatically use a combination of the AMM and CLOB DEX to achieve the best rate. Also, unlike the AMMs on other blockchains, the XRP Ledger’s AMM comes with a fee auction mechanism where liquidity providers can bid on the opportunity to trade against the AMM with reduced fees.
Several proposals on XRPL have been subjected to votes, including the XLS-40 amendment we reported in March. According to reports, these could prepare the grounds for the launch of Ripple 2.0.
At press time, XRP was trading at $0.533 after declining by 1% in the last 24 hours.
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