XRPL is activating the Automated Market Maker (AMM) feature for RLUSD.
The upgrade goes live on Thursday at 7:37 PM UTC after surpassing an 80% validator consensus.
XRP is trading at $3.10, marking a 1.3% gain over the past 24 hours.
The XRP Ledger (XRPL) is set to debut a new Automated Market Maker (AMM) feature for the holders of the Ripple USD (RLUSD) stablecoin, introduced in the market last month. Slated to go live on Thursday at 7:37 PM UTC, this update follows the successful surpassing of the 80% validator consensus requirement.
The XRPL community anticipates heightened DeFi activity following the update. The change could enhance liquidity for XRP and open up fresh trading opportunities on XRPL’s native decentralized exchange (DEX).
Notably, AMMs enable users to trade assets without conventional order books. XRPL embraced this functionality in March 2024, offering liquidity providers the chance to earn returns from select pools. However, RLUSD, in December 2024, was excluded from AMM participation due to a clawback restriction.
This restriction allowed the entities behind the token to dig and claw back the tokens that are associated with illegal activities or non-compliance with government policies. The restriction formed a roadblock to the integration of RLUSD with AMM pools, setting the holders of the dollar-backed stablecoin, aside.
AMMClawback Feature
The introduction of addresses this issue by implementing the AMMClawback feature. With this update, token issuers can maintain compliance by reclaiming assets within AMM pools while still enabling trading and liquidity provision. It is important to note that a massive 91.43% of validators approved the amendment.
Under this update, issuers can freeze or claw back tokens in AMM pools while ensuring that unauthorized wallets cannot deposit paired assets. Importantly, any clawback action must now use the specialized AMMClawback function rather than standard clawback transactions.
The AMMClawback feature’s activation is expected to pave the way for an XRP/RLUSD AMM pool, boosting liquidity for both tokens. Ripple CTO David Schwartz has previously noted that RLUSD could serve as a catalyst for enhancing XRP liquidity.
XRP Price Action
Meanwhile, XRP is strongly holding its price around $3.10, up 1.3% in the past 24 hours. The daily price action of XRP shows a bullish setup, with RSI standing at 62.06, indicating moderate bullish momentum with room for further growth.
Additionally, the MACD histogram shows a bullish crossover, suggesting a potential continuation of the upward trend.
Source: TradingView
If the price breaks past immediate resistance at $3.15, it could target the $3.50 level. However, failure to maintain bullish momentum may trigger a retest of support near $3.00. For now, market indicators lean in favor of continued gains.
