The developer division of RippleX has discovered an error in a few automated market maker (AMM) pools that has been preventing transactions from completing correctly.
Its engineering staff is collaborating with community members to resolve the problem.
However, RippleX has advised users to hold off on adding additional money to AMM pools for the time being. It has committed to provide the community timely updates.
Major milestone for XRP Ledger
After two years, the AMM became live on the XRP Ledger mainnet on March 22. The AMM, in the words of Ripple’s chief technical officer David Schwartz, signalled the beginning of a “longer road” that would lead from the initial deployment to subsequent use milestones.
According to Schwartz, the launch of the AMM functionality is a “significant moment” for XRP Ledger since it will enable the DeFi ecosystem to grow and draw in additional liquidity.
The AMM approach creates liquidity pools that use specific algorithms to establish asset values, hence eliminating the need for traditional order books. Aggregated liquidity, a continuous action mechanism, and single-sided liquidity provision are a few of the essential components of XRPL’s AMM.
Main use cases
Schwartz detailed a wide range of use cases for the AMM functionality in a recent blog post. These included both non-financial use cases (such seamless asset swaps) and financial applications (like trading and yield farming).
The community has been warned by the Ripple CTO that the transactions are “novel and complex,” thus he is advising people to report bugs and make their own recommendations without holding back.
