Great news for all XRP fans and those looking to earn passive income. The XRP ecosystem is about to undergo a big change.
The XLS-30D AMM Amendment, supported by Anodos Finance founder Panos Mekras, is gaining momentum, with a huge 60% of XRP Ledger (XRPL) validators showing their support. This is a major moment for XRP holders.
20 UNL validators are now voting Yes on the #XRPL AMM amendment. We are getting closer. https://t.co/2JR5mdf6av pic.twitter.com/MbULZDzSJw
— Panos 🔼{X} (@panosmek) January 22, 2024
The XLS-30D AMM Amendment brings automated market maker (AMM) functionality to the XRP Ledger. This means that the ledger will be connected to decentralized exchanges, creating a pool where XRP holders can contribute their XRP and earn passive income based on their contribution.
It’s also important to consider that, Liquidity providers (LPs) who contribute to the AMM also get voting rights on the trading fees. This means they have a say in how the exchange operates. It’s all about decentralization and giving power to the people.
A recent Stedas poll showed that a whopping 75% of XRP holders are interested in participating in AMM liquidity provision. This shows just how much potential there is for passive income in the XRP community.
The Journey to Implementation
While it’s a big milestone to have 60% of validators supporting the amendment, there’s still work to be done. It needs to secure an 80% endorsement from validators to make it happen.
There are also concerns about market volatility and manipulation that need to be addressed. Rest assured, the successful audit by CertiK, giving the code base a 95/100 security score, gives confidence in its safety.
The integration of AMM into the XRP Ledger has some exciting implications beyond passive income. Let’s take a closer look:
While taking a closer look, we found that AMMs can attract new users to the XRP ecosystem by making it easier to access liquidity and offering attractive passive income options. This could lead to more growth and development for the network.
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AMMs also improve price discovery for XRP by constantly buying and selling within the system. This gives us real-time market signals that reflect supply and demand more accurately. It’s great news for institutional investors looking for reliable market data.
Beyond the Hype
It’s important to be realistic about potential challenges while recognizing the undeniable rewards. AMMs may introduce some complexities and risks, but the XLS-30D amendment opens up a new world of passive income opportunities for XRP holders. It shows that XRP is a versatile and innovative cryptocurrency.
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