XRPL Blockchain Joins Cross-Chain DeFi with Ripple’s RippleNet
Ripple has launched a new automated market maker (AMM) protocol called XLS-30. Developed in partnership with the XRPL community, this AMM is expected to enhance the decentralized finance (DeFi) capabilities of Ripple’s XRPL blockchain ecosystem. It also aims to enable cross-chain DeFi use cases across 50 different blockchains.
To provide context, XRPL’s existing decentralized exchange (DEX) operated using a traditional order book system which did not include some of the advanced features found in newer DeFi protocols. The introduction of the AMM is intended to bridge this gap and lay the foundation for further DeFi development on the XRPL blockchain.
By integrating the AMM with cross-chain messaging services like Axelar, XRPL’s DeFi solutions can reach a wider audience and be more useful across various blockchain ecosystems. Ripple has been working on the development of the AMM since June 2022, and it aims to complement and expand the existing order book system of XRPL’s DEX.
The integration of the AMM with order books provides benefits for both traders and liquidity providers. Traders will automatically receive the best price across both systems, while liquidity providers can earn yield on their excess liquidity. Although the AMM does not currently have built-in compliance features, it can still be valuable for high-volume traders or firms.
Ripple and XRPL are also exploring the addition of on-chain regulatory compliance features to support institutional adoption of their protocol. This move could attract larger financial institutions looking for a more suitable trading environment for popular tokens traded at high volumes.
Ripple’s new AMM protocol, XLS-30, is set to enhance the DeFi capabilities of XRPL’s blockchain ecosystem. By integrating with order books and cross-chain messaging services, Ripple aims to provide a more robust and versatile trading environment for a wide range of users, from retail traders to institutional investors. The addition of regulatory compliance features may also further encourage institutional adoption.
6 thoughts on “XRPL Blockchain Joins Cross-Chain DeFi with Ripple’s RippleNet”
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Ripple’s focus on enhancing the DeFi capabilities of XRPL’s blockchain ecosystem shows their dedication to creating a robust and inclusive financial system. Exciting times indeed!
Integrating with order books and cross-chain messaging services doesn’t make Ripple’s protocol any more impressive. Just looks like a desperate attempt to stand out.
Ripple’s new AMM protocol is set to revolutionize the XRPL ecosystem by making DeFi more accessible and versatile. It’s a step in the right direction for the future of finance!
Adding on-chain regulatory compliance features is definitely a step in the right direction, but it still doesn’t make up for the lack of innovation in this AMM.
Ripple is just trying to attract larger financial institutions with its regulatory compliance features. It’s all about the money for them.
The addition of regulatory compliance features will give Ripple’s protocol even more credibility and appeal to larger financial institutions. This could be a game-changer for the ecosystem!