Ripple’s underlying XRPL blockchain is set to unlock a wide range of decentralized finance capabilities following the launch of a natively built automated market maker protocol.The AMM is expected to expand the DeFi capabilities of the XRPL ecosystem and enable cross-chain DeFi use cases across 50 blockchains.
Integration with cross-chain messaging services like Axelar will broaden the reach and utility of XRPL-based DeFi solutions across several blockchain ecosystems. The AMM allows developers to enable the creation of liquidity pools for any pair of assets issued on XRPL. Ripple also confirmed that the AMM was not explicitly targeted at institutional trading entities but that its functionality might prove useful for high-volume traders or firms.
Adding the AMM to the existing order DEX is touted to provide a robust trading environment for a range of users, from retail traders to institutions.