The XRP Ledger (XRPL) is set to undergo a major upgrade that will introduce an Automated Market Maker (AMM) pool for Ripple USD (RLUSD). The upgrade has received over 80% validator consensus and will be live by January 30, 2025. This development is expected to enhance liquidity for XRP and provide more trading opportunities on the XRPL decentralized exchange (DEX). The introduction of AMM functionality last year allowed users to earn from providing liquidity on select pools, but RLUSD was unable to participate due to a restriction related to its clawback feature. The XRPL community introduced an amendment that modifies how clawback-enabled tokens interact with AMM pools, gaining support from over 90% of validators. The new amendment will allow token issuers to reclaim assets in AMM pools if the clawback option is enabled, ensuring compliance with regulatory standards while enabling trading through automated liquidity pools. The amendment also outlines certain restrictions and requirements for tokens and wallets within AMM pools. The introduction of the AMM pool for XRP/RLUSD is expected to improve liquidity for both assets and stimulate growth in DeFi activity on the XRPL.



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