A new update is on the horizon for Ripple but it needs the community’s validation.
Published on the official Twitter of Ripple’s development team, the firm announced an update to the XRP Ledger that will introduce a couple of new features, pending validation from community.
The specification is numbered 1.12.0, and it merges the XLS-30 Automated Market Maker and the XLS-39 Clawback spec to the network. Let’s dive in.
The Automated Market Maker
The Automated Market Maker feature was presented by Ripple’s CTO David Schwartz, alongside Aanchal Malhotra, RippleX’s Head of Research, back on July 1st, 2022.
It clarified that the XRPL decentralized exchange only provided liquidity by manual market making and order books. The proposal aimed to add a non-custodial automated market maker as a native feature to the DEX “in a way that provides increased returns to those who provide liquidity for the AMM and minimizes the risk of losses due to volatility.”
That said, the AMM, as specified in XLS-30, was merged to the latest version of the XRP Ledger’s server software called rippled.
XLS-30 will bring a native Automated Market Maker to the XRPL that integrates with the existing order book DEX to enable trading of digital assets in automated liquidity pools and enable developers to address a wider audience of DeFi stakeholders. – reads the announcement.
What’s the Clawback Feature?
Presented as a “lightweight addition to the rippled 1.12.0 codebase,” the Clawback feature would allow for an opt-in capability for newly issued assets to be clawed back through a trustline.
XLS-39 introduced the feature, and it was first specified by the former Director of Engineering of Ripple Labs – Nik Bougalis – back in 2022.
It’s important to note that XLS-39 deals only with issued assets, meaning that the proposed clawback support cannot be used to claw back XRP.
As mentioned above, the proposed changes will go live only if approved by the validating community.
For an amendment to pass:
At least 80% of validators must approve the amendment by updating their vote to “yes.”
This minimum treshold must remain for at least 2 weeks.