Ripple (XRP) Enables an Integral Update to the XRPL Mainnet: Details

1 month ago 21

TL;DR

XRP Ledger’s fixAMMv1_1 update was activated on September 24 to improve the Automated Market Maker (AMM) feature.
XRP’s price remained steady around $0.58 following the development.

The First Out of Three

Earlier this month, the team behind XRP Ledger (XRPL) announced that a major update under the code fixAMMv1_1 will be implemented within two weeks. The development was approved to proceed after 28 votes in favor (out of 35).

According to XRPScan, the working group enabled it on the XRPL mainnet on September 24. The upgrade primarily focuses on the Automated Market Maker (AMM) functionality and aims to enhance the its efficiency, performance, and usability.

For its part, the AMM is a decentralized mechanism that allows users to exchange assets directly on the XRPL without needing intermediaries. The main goal of the improvement is to streamline the trading process and minimize potential risks for liquidity providers.

The team said the implementation of fixAMMv1_1 is one of the three amendments to be activated this week. The XRP Ledger has witnessed several other updates recently. Last month, its main Testnet underwent a reset, becoming temporarily unavailable to users. The effort aimed to improve stability and reduce the cost of running a node.

A few weeks before that, OpenEden – a fintech firm connecting traditional finance with decentralized finance (DeFi) – announced plans to introduce tokenized US Treasury bills (T-bills) to the XRP Ledger for the first time. Ripple also revealed it will establish a fund to invest $10 million in these products.

“Institutions are increasingly looking at where to tokenize their real-world assets, and the arrival of T-bills on the XRPL powered by OpenEden reinforces the decentralized Layer 1 blockchain as one of the leading blockchains for real-world asset tokenization,” Markus Infanger – Senior Vice President at RippleX – commented at the time.

XRP Price Reaction?

Ripple’s native token -XRP – experienced little to no volatility following the aforementioned upgrade announcement and continues to trade at around $0.58 (per CoinGecko’s data).

Meanwhile, it is up 10% on a two-week scale after positive developments such as Grayscale’s launch of a dedicated Ripple Trust and the US Fed’s decision to lower interest rates by 0.5%.