The Ripple stablecoin RLUSD recently deviated from its 1:1 peg to the U.S. dollar, raising concerns about its stability. The XRP Ledger community plans to introduce an Automated Market Maker (AMM) pool to stabilize RLUSD, but some caution about the risks of participating as a liquidity provider. Impermanent loss, where changes in the price ratio of pooled assets result in lower returns, is a known risk for liquidity providers in AMMs. However, using the pool to swap assets instead of providing liquidity is considered less risky. The introduction of the AMM pool is expected to improve liquidity and create a more stable exchange rate for RLUSD.



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