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Here is How XRP Holders Can Use XRPL AMM as Hedging Strategy

XRPL automated market makers (AMMs) on the XRP Ledger have introduced a new potential benefit for XRP community members. The implementation of the AMM clawback amendment allows for regulated stablecoins with clawback features to be included in XRPL liquidity pools. Panos Mekras, co-founder of Anodos, suggests that this functionality can be used as a hedging strategy to mitigate risk. By providing liquidity to XRP/stablecoin pairs, users can limit exposure to both the upside and downside of XRP's price movements. This can be used to cover losses from trading positions or investment holdings. The adoption of RLUSD-based liquidity pools, enabled by the AMM clawback amendment, has been swift, with 68 pools launching in just five days, attracting over $1.4 million in liquidity.

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