Neil Hartner, an Engineer at Ripple Labs has shared one of his latest discoveries about the functionality of the XRP Ledger (XRPL) as it relates to the XRP coin.
The Liquidity Allowance of XRPL
According to Hartner, it is still possible to provide liquidity for a restricted token that is resident on the XRPL. By restricted token, he meant digital currencies that require a trustline to authorize its usage, and by this allowance, this feature makes the XRPL Automated Market Maker (AMM) a more flexible entity than any other in the industry today.
Now, if there are any offers on the order book higher than 0.454 then those offers with be matched by the AMM as part of the deposit rebalancing. So you maybe end up with something different than 11k XRP and 5k XRP in the pool afterward.
— Neil Hartner (@illneil) September 17, 2023
Responding to a line of questioning from his followers, the Ripple developer noted that it is possible to initiate a single-sided deposit and a single-sided withdrawal. This means that providing liquidity for any asset pair including a restricted token will still payout rewards to the user in XRP as one “can only withdraw assets that you are authorized to hold.”
Hartner also went on to describe the exceptional liquidity rebalancing of the XRPL that suggests the protocol is indeed one of its kind. Per his interaction with his followers, Hartner presented the XRPL as a smart contract network that can accommodate users with varying investment interests.
More XRPL Innovations Underway
The XRP Ledger is a protocol that is still building its momentum with the emergence of new protocols and platforms across the board. The XRPL AMM that was brought into the spotlight by Neil Hartner is just one of the numerous protocols under development by the core engineering team.
As a smart contract hub that is competing with the likes of Ethereum and Solana, the XRPL is also innovating in the Non-Fungible Token (NFT) arena for both users and creators alike. While its developmental efforts are still largely in their infancy, the XRPL has been proven to showcase enough utility for all.
Over the past few months, there has been a series of upgrade work on the XRPL to further position it as a protocol that can help onboard the next generation of blockchain users.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: