Ripple Engineer Reveals Rare XRPL Liquidity Feature

• A Senior staff software engineer at Ripple highlights a key functionality of the XRP Ledger (XRPL).
• Crypto holders can deposit and withdraw XRP single-side into/from an AMM pool of restricted token/XRP pairs.

In a recent post shared to X, formerly Twitter, a staff at Ripple shared some of his new findings on the structure of the XRP Ledger (XRPL). According to Neil Hartner, a Senior staff software engineer at Ripple, XRPL is structured in a way that makes it possible for users to gain liquidity. This functionality also includes tokens with restricted pairs.

“Interesting thing I learned about the XRPL AMM. If there’s a liquidity pool for a restricted token (i.e. requires an authorized trustline) that you can’t hold, you can still provide XRP as liquidity to the pool. I don’t think this is possible with most other AMMs.” He wrote in a post.

Now, if there are any offers on the order book higher than 0.454 then those offers with be matched by the AMM as part of the deposit rebalancing. So you maybe end up with something different than 11k XRP and 5k XRP in the pool afterward.

— Neil Hartner (@illneil) September 17, 2023

Users who have access to, or hold any of these restricted assets can access liquidity by carrying out a single-sided deposit, along with a single-sided withdrawal from the pool. However, users can only deposit and withdraw assets that they are authorized to hold.

In addition to this, the engineer also noted that users on any pool can carry out this action, however, pools that are unique to other pools with XRP might not be able to carry out these actions.

It is worth noting that crypto holders are not required to carry out asset sales using a single-sided deposit. Crypto users can choose to deposit 1 asset (single-sided) or both into the pool.

The continuous auction feature on the XRPL AMM platform places it ahead of its competitors

In response to a comment from another user seeking clarity, the engineer broke down the possible changes that they could experience while taking action.

As he explains;“Now, if there are any offers on the order book higher than 0.454 then those offers with be matched by the AMM as part of the deposit rebalancing. So you maybe end up with something different than 11k XRP and 5k XRP in the pool afterward.”

On the other hand, Neil Hartner spotlighted yet another notable feature of the XRPL AMM. The continuous auction feature is one that the engineer considers to be significant in the Ripple ecosystem. The auction slot is then paid for, by burning liquidy tokens. This would then go on to cut down on the number of tokens while increasing the income in the pool. This feature is also fairly near to a lot of other existing Automated market makers (AMMs).

The XRP Ledger (XRPL), a Blockchain ecosystem focused on cross-border payments, smart contracts, and digital currencies, is still in its infancy. However, technology has already succeeded in solidifying its position in the market, as it introduces new protocols.

XRPL, Ripple, XRP, AMMS

Neil Hartner, a Senior staff software engineer at Ripple, spotlights some outstanding features of the XRP Ledger (XRPL).

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