Ripple CTO Explains RLUSD-XRP AMM Pools May Enhance XRPL DeFi Liquidity and Stability

  • AMM pools replace order books with pooled liquidity for continuous trading.

  • Liquidity providers receive pool tokens representing a proportional claim on combined RLUSD and XRP.

  • The RLUSD stablecoin integration (clawback amendment, Jan 2025) increased on-ledger trading and XRPL DeFi participation.

RLUSD XRP AMM pools explained: Learn how RLUSD and XRP liquidity pools rebalance and create DeFi liquidity on XRPL — read how to add liquidity today.

Ripple CTO David Schwartz explains RLUSD-XRP AMM pool mechanics, highlighting stablecoin’s role in boosting XRPL DeFi and liquidity growth.

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Ripple CTO David Schwartz explained how automated market maker (AMM) liquidity pools work with the RLUSD stablecoin on the XRP Ledger in a response to user queries on the platform X. His explanation followed a clear uptick in RLUSD usage for decentralized trading on the XRPL.

RLUSD-XRP AMM pools on the XRPL are smart contract-like liquidity pools that pair RLUSD and XRP in equal value, allowing trading via a constant-product mechanism. Liquidity providers deposit equal-value assets, receive pool tokens, and earn fees as the pool rebalances to maintain parity during price moves.

The XLS-30D amendment (March 2024) added AMM support to the XRPL, enabling on-ledger liquidity pools. RLUSD became more broadly tradable after the clawback amendment took effect in January 2025, which allowed RLUSD to float directly on-chain and expanded its DEX listings. These protocol updates underlie current AMM operations.


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Source: https://en.coinotag.com/ripple-cto-explains-rlusd-xrp-amm-pools-may-enhance-xrpl-defi-liquidity-and-stability/