The XRP Army has moved en masse to lock their tokens on various automated market maker pools as trading resumes following a recent amendment fix.
In a recent post on X, community member Krippenreiter called attention to the uptick in XRP tokens locked on AMM pools. At the time of the update, about 604K XRP assets have been locked across 201 liquidity pools.
Over 820K XRP Locked in AMMs
Remarkably, in a space of three hours, the number has expanded by over 200,000 XRP. In particular, at the time of reporting, data from the XRP explorer XRPScan indicates that 820,657 XRP coins had been locked on 220 active AMM pools.
The largest liquidity pool involves the USDC/XRP pair, with 184,528 tokens locked with an LP token balance of 122,448,940 at press time. This is followed by the XRPS/XRP pair, with 122,499 tokens locked with an LP token balance of 2,216,844,170.
Before now, XRPL AMM pools had experienced diminished activity over the last two weeks, steadily declining from 534,000 after the AMM launch on March 22 to as low as 279,000 XRP on April 6. The recent growth in locked up tokens helps reduce the supply of tokens available in the market.
Recent AMM Amendment Fix
The decline occurred as several AMM pools halted trading due to a technical glitch discovered by developers just two days after the XRPL AMM launched. Upon investigation, the RippleX team observed that the glitch affected how the DEX payment engine directed liquidity through the AMM pools and order books.
More specifically, they identified discrepancies in certain AMM pools where transactions were not executing as intended. Accordingly, RippleX advised participants against depositing new funds into AMM pools, urging those holding LP tokens to consider redeeming them.
We’ve identified a discrepancy in a few AMM pools, in which transactions are not executing as intended. Our engineering team is working to resolve the issue alongside community participants. Out of an abundance of caution, it’s best not to deposit new funds into AMM pools for…
— RippleX (@RippleXDev) March 23, 2024
Meanwhile, the engineering team and community members initiated efforts to address the issue. The effort has yielded result as the issue has been fixed through the “fixAMMOverflowOffer” amendment. With the amendment now live, AMM pools have resumed activities, and the locked tokens are nearly 1 million XRP.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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