An amendment suggesting the incorporation of an automated market maker (AMM) trading platform into the XRP Ledger has achieved the necessary consensus threshold for approval. This development enables XRP token holders to potentially earn income and engage in on-chain trading.
The XRP community noticed the proposal’s approval, with prominent member Vet sharing the news. They highlighted that the automated market maker platform is scheduled to activate on February 14th.
Introduction of AMM Platform and Security Breach
The newly launched platform enables XRP token holders to trade via liquidity pools rather than traditional order books, promoting permissionless trading. These pools, comprising tokens supplied by liquidity providers, facilitate trades with token prices determined by blockchain oracles.
That was quick !! 😳
The activation flag for Automated Market Maker for the XRP Ledger ist set !! We have all yes votes needed.
The AMM is officially coming and it's activation period !
ETA for AMM activation Feb 14th pic.twitter.com/3yvQIF3Vpb
— Vet 🏴☠️ (@Vet_X0) January 31, 2024
Liquidity providers earn revenue each time a trade occurs using these pools, but this comes with the risk of impermanent loss due to price fluctuations altering the token ratio. However, this loss is temporary as the token ratio can be restored over time, potentially allowing providers to recover their fees.
Meanwhile, the approval of the AMM platform coincides with Ripple Chairman Chris Larsen’s revelation that over $120 million worth of XRP tokens were stolen from some of his personal accounts. Although Larsen didn’t confirm the exact amount reported by crypto analyst ZachXBT, who traced the stolen funds to various trading platforms like MEXC, Gate, Binance, Kraken, HitBTC, and OKX, he promptly notified these exchanges to freeze the affected addresses. Larsen also confirmed the involvement of law enforcement in the investigation.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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