Ripple (XRP) Upgrades XRPL Mainnet with AMM Feature Enhancements

TL;DR

• The XRP Ledger’s fixAMMv1_1 upgrade was activated on September 24 to enhance the Automated Market Maker (AMM) functionality.
• XRP’s price has remained stable at approximately $0.58 following this update.

The First of Three

Earlier this month, the XRPL team announced that a significant update tagged fixAMMv1_1 would be rolled out in a fortnight. The decision to proceed was backed by 28 votes in favor (from a total of 35).

As per XRPScan, the working group activated it on the XRPL mainnet on September 24. This upgrade primarily aims to enhance the efficiency, performance, and usability of the Automated Market Maker (AMM) feature. 

In essence, the AMM serves as a decentralized platform enabling users to trade assets directly on the XRPL, eliminating the need for intermediaries. The main objective of this enhancement is to optimize the trading process and reduce potential risks for liquidity providers.

According to the team, implementing fixAMMv1_1 is the first of three updates scheduled for activation this week. The XRP Ledger has seen various updates lately. Last month, the core Testnet was reset, making it temporarily unavailable to users, a move aimed at boosting stability and decreasing the costs associated with running a node.

Weeks prior, OpenEden – a fintech company that bridges traditional and decentralized finance (DeFi) – shared intentions to introduce tokenized US Treasury bills (T-bills) on the XRP Ledger for the first time. Ripple also disclosed its plans to create a fund to invest $10 million into these assets.

“Institutions are increasingly exploring ways to tokenize their real-world assets, and the introduction of T-bills on the XRPL through OpenEden solidifies the decentralized Layer 1 blockchain as a top platform for real-world asset tokenization,” commented Markus Infanger, Senior Vice President at RippleX.

How Did XRP Price React?

Following the upgrade announcement, Ripple’s native token – XRP – showed minimal volatility and continues to be traded around $0.58 (according to CoinGecko’s data).

In the meantime, XRP has gained 10% over the past two weeks due to favorable developments such as Grayscale’s launch of a dedicated Ripple Trust and the US Federal Reserve’s recent decision to cut interest rates by 0.5%.

For those interested in optimistic price forecasts for XRP, you can read our dedicated article here.