An XRPL ammendment that will pave the way for the creation of an XRP/RLUSD AMM pool has achieved validator approval.
The XRP Ledger (XRPL) community has approved a significant amendment to allow the creation of automated market maker (AMM) pools for RLUSD. This change comes as the XRPL ecosystem seeks to boost XRP liquidity and support wider adoption of Ripple’s stablecoin.
AMM Clawback Amendment Hits Validator Approval
The AMMClawback amendment, which recently gained over 85% approval from XRPL validators, will specifically allow tokens with a clawback feature, like RLUSD, to be used in AMM pools. This comes ten months after XLS-30D passed last March, allowing the creation of AMM pools on the XRPL.
Currently, tokens with the clawback feature are excluded from AMMs. The clawback function, whose amendment passed in February 2024, is essential for regulatory compliance, particularly for banks, as it enables issuers to reclaim tokens under specific circumstances, such as criminal activities.
The amendment introduces two key modifications. First, it permits clawback-enabled tokens to interact with AMMs. Second, it updates the rules for token deposits in AMMs, ensuring frozen tokens cannot be deposited.
Additionally, a new transaction type, AMMClawback, will allow issuers to reclaim tokens deposited in AMM pools. These changes set the stage for creating AMM pools featuring RLUSD, Ripple’s stablecoin, and other tokens like XRP.
The amendment gained traction when it secured 29 votes in favor and six against, achieving an approval rate of over 82%, as confirmed by prominent dUNL validator Vet. With 80% approval required for two consecutive weeks, the proposal was already on track to pass.
Interestingly, latest data suggests it has crossed 85% approval with 30 validators supporting it and only five opposing. If this rate holds for the next two weeks, the amendment will officially take effect on Jan. 30, 2025. According to Vet, anyone can create AMM pools with RLUSD once the amendment becomes active.
RLUSD Could Boost XRP Liquidity
RLUSD, which launched in December 2024, has gained traction across various exchanges, though it has yet to list on major platforms like Binance and Coinbase.
Ripple’s CTO, David Schwartz, and others have noted that RLUSD could significantly boost XRP liquidity if fully adopted. However, the stablecoin’s integration into AMM pools serves as a major step toward achieving this goal.
Panos Mekras, co-founder of Anodos Finance, highlighted the excitement surrounding the forthcoming XRP/RLUSD AMM pools. Mekras urged community members to prepare to provide liquidity and utilize the swap features once the amendment is live. Anodos Finance will facilitate these activities through its platform.
Are you ready for $RLUSD AMM pools? XRP/RLUSD is what everyone is anticipating. Be ready to provide liquidity and swap on https://t.co/yDfVgvZWSw 🔼 https://t.co/iRBxUaMJXJ
— Panos 🔼{X} (@panosmek) January 17, 2025
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