- XRPL has introduced AMM -Pools for Ripple’s USD (RLUSD)
- XRPL ammclawback improves the Layer-1 network by eliminating traditional order blocks
XRPL ammclawback upgrade goes live
After months of speculation, XRP whides have finally upgraded the ammclawback change to change compliance with the regulations for AMM -Pools.
According to Xrp.orgThe new change introduces new guidelines for liquidity providers, in particular to tokens with legal requirements. That is why the upgrade token providers will facilitate to collect assets from AMM -Pools under defined circumstances.
As such, if a certain active or token is frozen, users cannot use the same liquidity pool to deposit new assets. This will help prevent corresponding transactions in which these frozen assets are involved, which improves compliance with the regulations.
Ammclawback -Rol in XRP/RLUSD
This upgrade in particular is even more important for RLUSD. This is because the AMMs will eliminate the need for traditional order books, making it possible to make flexible and seamless trade and liquidity provisions.
That is why RLUSD holders will enjoy rewards of liquidity pools, because the new function makes RLUSD participation in AMM -Pools possible.
It is important that the upgrade that encourages the XRP/RLUSD AMM -Pool will significantly improve liquidity for both assets. As such, trading activities will become faster, cheaper and safer and transform XRPL into a large digital active.
AMM -Lines for Liquidity Providers
The new upgrade introduces different rules and guidelines for users and liquidity providers. First of all, for regulatory reasons, some issuers must have the opportunity to reclaim issued tokens after they are distributed under bills.
For example, if an issuer discovers that tokens were sent to an account punished for illegal activities, the issuer could reclaim the funds.
Secondly, unauthorized accounts can only deposit once once the paired asset is permitted. As such, token providers must use the ammclawback function to pick up assets from Polish. This mechanism is vital because it offers a better approach to force compliance without influencing the usual trading activities on the XRPL.
What does this mean for XRP?
Well, the new upgrade is good news for the XRP network, because it had difficulty growing. Although the price of XRP has risen over the past 3 months, the network has difficulty keeping pace.
Source: Santiment
XRPL DEX AMM volume, for example, fell from 3.85 million to 639.9K.
This drop suggested that fewer traders exchange assets assets on the XRPL DEX. Liquidity providers therefore take up money, resulting in slipping for transactions. Simply put, fewer participants are actively working on the market.
Source: Cryptuquant
This fall can be further validated by a sharp fall in the active addresses of XRP. For example – the number of active participants fell from 63.3k to 37K last month.
That is why the new AMM -upgrade that offers more rewards for providers can encourage market makers to actively participate. The ammclawback upgrade can lead to new trade options, which increases the acceptance rate for the network.
Similarly, reluctant investors who have avoided the network can now enter the market for security and regulatory care now. This will not only position XRPL as a powerhouse in the Defi Ecosystem, but also facilitates the growth of XRP on the price diagram.
