“Imagine something like Uniswap or Curve, but on XRPL!”
This is a brief high-level proposal for implementing Automated Market Makers (AMMs), specifically Constant Function Market Makers (CFMMs), directly on the XRPL. The ideas presented below are neither innovative nor original. But I believe they would represent a valuable addition to XRP.
The main benefit of the proposal is the creation of decentralized autonomous swap pools. This functionality would in turn significantly reduce the barrier of entry and would allow anyone to participate in global liquidity pools, similar to how Uniswap is operating on Ethereum (sans the on-chain fee hilarity…).
As fans of XRP know, xRapid is Ripple’s solution for on-demand liquidity, aimed at payment providers and financial institutions dealing with cross-border money transfer. There is a lot of controversy surrounding whether anyone is actually using xRapid in a commercial setting and what the transaction volumes look like.
Utilization of XRP by xRapid is currently considered as one of the key factors of XRP’s long-term value proposition. It is therefore interesting to explore the public ledger history for signs of xRapid activity with the eventual goal to quantify this activity and monitor its evolution.
Note: information and conclusions below might…