Ripple’s(XRP) team has revealed the 2022 proposed Automated Market Maker ledger amendment XLS-30 is now available for community voting on the mainnet.
According to the Ripple developer’s X(formerly Twitter) tweet, XLS-30 is a technical specification designed for the creation of a native automated market maker (AMM) protocol, seamlessly integrated with the orderbook-based decentralized exchange (DEX) on the XRP Ledger(XRPL).
The announcement comes just a few days after the Ripple development team notified the public about the introduction of several updates on the XRPL awaiting community approval.
Per dev.to, XLS-30d protocol empowers application developers to design user interfaces for traders and liquidity providers (LPs) using predefined functions. Additionally, XLS-30d introduces an innovative auction mechanism that incentivizes arbitrageurs, thereby minimizing the impact of impermanent loss on LPs.
Furthermore, the AMM implementation on the XRPL leverages Federated Consensus and canonical transaction ordering, making it less susceptible to Miner Extractable Value (MEV) and front-running attacks. Moreover, the AMM enables simplified user experiences by providing single-sided liquidity.
By incorporating XLS-30d, users can benefit from the XRPL’s enhanced security and streamlined trading capabilities, making it an ideal choice for various applications in the digital asset space.
The blockchain’s Chief Technology Officer, David Schwartz, called the innovation his “most cherished XRPL feature. However, Schwartz has not responded to the X crypto community’s query on why he particularly lauds XLS-30.