It will soon be possible for $XRP holders to earn passive income.
Apart from classic “staking” (the act of blocking your cryptocurrencies to receive rewards: free tokens), which are used to validate transactions or provide/guarantee the liquidity of a project…
XRP-Ledger sets up AMM (Automated Market Makers).
They are like automatic machines that allow people to trade digital assets in a decentralized manner. Each AMM has a “pool” of assets, and users can deposit their assets into this pool to earn tokens representing their share. In exchange, they can earn fees and vote on certain rules.
When many people trade assets in the pool, it can make money for liquidity providers. However, if asset prices change a lot, this can cause “losses” to liquidity providers.
AMM automatically adjusts exchange rates based on pool balance. The more assets in the pool, the better the exchange offers. Fees are levied on each transaction to reward liquidity providers.
The tokens that people receive for depositing assets can be exchanged or used to vote on AMM rules. There are also tips like temporary fee reductions. However, there are risks, such as price changes and limitations on the types of assets that can be used.
In summary, AMMs provide an automated way to trade digital assets while allowing people to make money through the provision of liquidity.
https://xrpl.org/automated-market-makers.html
