RLUSD-XRP AMM Pools Unveiled to Enhance DeFi Liquidity
Ripple CTO David Schwartz has outlined how RLUSD-XRP AMM pools on the XRP Ledger strengthen DeFi liquidity and trading stability. Enabled by the XLS-30D (March 2024) and RLUSD clawback (January 2025) amendments, these RLUSD-XRP AMM pools let providers deposit equal-value XRP and RLUSD, earning liquidity tokens whose value grows with the pool constant and swap fees. These pools use a constant-product formula to rebalance assets automatically, ensuring continuous trading without order books and reducing slippage. While providers earn transaction fees, gains and losses mirror XRP price movements, addressing community queries on fee distribution stability. As RLUSD adoption rises and on-chain liquidity and volumes climb, these AMM pools could become a DeFi cornerstone. Traders should monitor pool performance, on-ledger metrics and upcoming protocol changes to leverage evolving liquidity opportunities.
Bullish
Implementing RLUSD-XRP AMM pools is likely bullish for XRP. In the short term, liquidity providers must acquire XRP to enter pools, driving buy-side pressure. The fee-earning mechanism and growing pool constant incentivize larger deposits, supporting trading volumes. In the long term, on-ledger AMM support and stablecoin integration reduce slippage and enhance network utility, attracting more DeFi users and capital. Historical trends show that protocol upgrades and deeper liquidity frameworks often lead to sustained demand for the underlying token, further reinforcing an upward trajectory for XRP.