Ripple's development team has announced an update to the XRP Ledger, which will introduce two new features if validated by the community. The update, numbered 1.12.0, merges the XLS-30 Automated Market Maker (AMM) and the XLS-39 Clawback spec to the network.
The #AMM feature was presented by Ripple's CTO David Schwartz and Aanchal Malhotra, RippleX's Head of Research, on July 1st, 2022. The proposal aimed to add a non-custodial automated market maker as a native feature to the decentralized exchange (DEX) to provide increased returns to liquidity providers and minimize the risk of losses due to volatility. XLS-30 will bring a native AMM to the XRPL, integrating with the existing order book DEX to enable trading of digital assets in automated liquidity pools and allowing developers to address a wider audience of DeFi stakeholders.
The Clawback feature, presented as a 'lightweight addition to the rippled 1.12.0 codebase,' would allow for an opt-in capability for newly issued assets to be clawed back through a trustline. XLS-39 introduced the feature, which was first specified by the former Director of Engineering of Ripple Labs, Nik Bougalis, in 2022. It is important to note that XLS-39 deals only with issued assets, meaning that the proposed clawback support cannot be used to claw back XRP. The proposed changes will go live only if approved by the validating community, with at least 80% of validators required to approve the amendment by updating their vote to 'yes' and maintaining this minimum threshold for at least two weeks.
