Cross-chain DeFi interconnected through XRPL blockchain

Ripple has introduced a new automated market maker (AMM) protocol, called XLS-30, in collaboration with the XRPL community. This AMM is expected to enhance the decentralized finance (DeFi) capabilities of the XRPL blockchain ecosystem and facilitate cross-chain DeFi use cases across 50 different blockchains. Unlike the existing decentralized exchange (DEX) on XRPL, which operates solely on order books, the AMM will incorporate advanced features pioneered by new DeFi protocols. Ripple’s chief technology officer, David Schwartz, stated that the AMM will lay the groundwork for further development of DeFi on XRPL. Integration with cross-chain messaging services, such as Axelar, will also expand the reach and utility of XRPL-based DeFi solutions across various blockchain ecosystems. The AMM has been in development since June 2022 and aims to complement and expand the existing order book system on XRPL. By integrating the AMM with order books, traders will be able to automatically receive the best price across both systems, while liquidity providers can earn yield on their excess liquidity. While the AMM currently lacks built-in compliance features, it is expected to be beneficial for high-volume traders and firms. Ripple and XRPL are also exploring the possibility of incorporating on-chain regulatory compliance features to support institutional adoption of the protocol. Overall, the addition of the AMM to XRPL’s existing DEX will create a robust trading environment for various types of users, from retail traders to institutions.