An amendment proposing the introduction of a built-in automated market maker (AMM) trading platform into the XRP Ledger has managed to reach the required consensus threshold to be approved, allowing XRP token holders to in the future generate income and trade on-chain.
According to data from XRP Ledger explorer XRPScan, the XLS-30 amendment has now received the approval of 30 network validators, including Ripple, Bithomp, Bitrue, Vet, and Alloy Networks, to be implemented on the network.
The proposal’s approval was first spotted by prominent XRP community member Vet, which noted that the activation of the automated market maker platform is now set for February 14.
The new platform is set to allow XRP token holders to trade in a permissionless way using liquidity pools rather than traditional order books. These pools are made of two or more tokens supplied by liquidity providers, and are used to settle trades, with the prices of tokens within them being determined through the use ofblockchain oracles.
Those who provide liquidity to the pools will receive revenue every time a trade is conducted using that pool, but the revenue comes with the risk of impermanent loss. Impermanent loss occurs when price fluctuations alter the ratio of the tokens within the pool, meaning token providers could be better off if they simply held the tokens in their wallets.
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The loss is considered to be impermanent because the ratio of tokens can be restored, in which case the token provider would be gaining the fees collected over time.
The AMM is being approved shortly after Ripple Chairman Chris Larsen confirmed that over $120 million worth of the XRO token were taken from “a few” of his personal XRP accounts.
Notably, Larsen didn’t confirmed the amount reported by crypto sleuth ZachXBT, which used on-chain data to trace the stolen funds being moved to various cryptocurrency trading platforms including MEXC, Gate, Binance, Kraken, HitBTC, and OKX.
Per Larsen, these cryptocurrency exchanges were rapidly notified of the security breach so they could freeze the affected addresses. Moreover, Larsen confirmed that law enforcement “is already involved” in the case.
Featured image via Pixabay.
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- Source: https://www.cryptoglobe.com/latest/2024/02/xrp-token-holders-set-to-be-able-to-earn-on-chain-income-with-newly-approved-amm-platform/
