April 25th, 2023, Ripple CTO David Schwartz puts out a statement today regarding the new XRPL AMM network that is currently live on DevNet. The Ripple CTO goes on to state that he is “more personally excited about this feature than any other proposed XRPL feature in the past ten years.”
XRP community member replies to David Schwartz asking, “How come?“. He responds, “Because when you hold a cryptocurrency, you generally view its volatility (large horizontal movements) as a minus. An AMM turns volatility into trading gains and this particular design is built around this function.” The conversation goes further with another question.
“Is there a lower risk of impermanent loss on the XRPL AMM compared to other AMMs?”
“Not really. But I’m hoping the gains from payment integration, the continuous auction mechanism, and harvesting more volatility (for the reasons explained in the article) will reduce the impact.”
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