Ripple’s CTO David Schwartz has officially announced that the AMMClawback update is now live on the XRPL mainnet. This update enables tokens with the Clawback feature to be utilized in AMM pools on the XRP Ledger, enhancing liquidity. The XRP community has widely welcomed this innovation, seeing it as a step toward strengthening XRP Ledger’s role in decentralized finance (DeFi).
AMMClawback Update Goes Live on XRPL Mainnet
Schwartz took to X (formerly Twitter) to share the news, retweeting an announcement from XRPscan with a celebratory “Woohoo!!” This update introduces new applications for Ripple USD (RLUSD), a recently launched stablecoin, while also aiming to boost liquidity in the XRP Ledger ecosystem.
The AMMClawback change allows tokens with the Clawback function to be integrated into automated market maker (AMM) pools on XRPL. The AMM mechanism facilitates decentralized token swaps and improves the efficiency of liquidity pools. More notably, token issuers now have the ability to retrieve tokens under specific conditions, even after they have been transferred to another account or utilized in AMM pools. This feature enhances compliance with regulatory frameworks by preventing illicit transactions and allowing the recovery of funds sent to unauthorized wallets.
Expanding RLUSD Utility and Strengthening Liquidity
Following approval from XRPL validators, the update has now been successfully integrated into the mainnet, making it possible for RLUSD to be traded within XRP Ledger’s decentralized exchanges (DEXs) and AMM pools. Previously, RLUSD could not be traded in liquidity pools, limiting its adoption. This change is expected to significantly increase the stablecoin’s trading volume and enhance overall liquidity in the XRPL ecosystem.
XRP Community’s Reaction and Future Prospects
The XRP community had been eagerly awaiting the AMMClawback update, and its activation was met with great enthusiasm. Many users expressed excitement over the expanded liquidity opportunities in the RLUSD/XRP trading pair, seeing it as a major step for XRP Ledger’s DeFi capabilities.
This update is being hailed as a crucial milestone in positioning XRP Ledger as a more robust platform for decentralized finance applications. As liquidity continues to grow, more tokens are expected to integrate with the new AMMClawback system.
Going forward, market participants will closely monitor the impact of the AMMClawback update on trading volumes and the broader XRPL ecosystem. This development could also attract institutional investors, further strengthening XRP Ledger’s use cases in the evolving digital asset landscape.
