Ripple Introduces New Features to XRP Ledger
Ripple’s development team recently announced an update to the XRP Ledger, pending validation from the community. The update, known as specification 1.12.0, incorporates the XLS-30 Automated Market Maker and XLS-39 Clawback spec into the network.
The Automated Market Maker
Ripple’s CTO David Schwartz and RippleX’s Head of Research, Aanchal Malhotra, presented the Automated Market Maker feature on July 1st, 2022. This feature aims to add a non-custodial automated market maker to the XRPL decentralized exchange, providing increased returns to liquidity providers and minimizing volatility-related losses.
The introduction of XLS-30 will enable trading of digital assets in automated liquidity pools and expand the audience of DeFi stakeholders.
Understanding the Clawback Feature
The Clawback feature, a lightweight addition to the rippled 1.12.0 codebase, allows for the clawing back of newly issued assets through a trustline. Introduced by Nik Bougalis, the former Director of Engineering at Ripple Labs, this feature applies solely to issued assets and does not cover XRP.
It’s important to note that these proposed changes will only go live if approved by the validating community. The amendment requires at least 80% of validators to approve it by updating their vote to “yes” and maintain this threshold for a minimum of 2 weeks.
Hot Take:
Ripple’s update to the XRP Ledger introduces new features that enhance liquidity provision and asset management. The Automated Market Maker and Clawback features aim to optimize trading experiences and expand the reach of decentralized finance stakeholders. However, the final implementation depends on community validation, highlighting the collaborative nature of blockchain development.
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