Ripple Team Warns of AMM Pool Disruption

A technical error has been identified in several of Ripple’s automatic market maker (AMM) pools, leading to incorrect transaction execution.

We’ve identified a discrepancy in a few AMM pools, in which transactions are not executing as intended. Our engineering team is working to resolve the issue alongside community participants. Out of an abundance of caution, it’s best not to deposit new funds into AMM pools for…

— RippleX (@RippleXDev) March 23, 2024

“For safety reasons, it is advisable not to deposit new funds into AMM pools for now, and holders of LP tokens should consider redeeming them,” platform representatives warned.

Developers later explained that the error affected the “payment system of DEX, misallocating liquidity among pools and order books in complex scenarios.” The XRPL blockchain team is working on a solution.

According to Ripple’s CTO David Schwartz, the issue “is not caused by the one-sided deposit feature, which is a planned part of the AMM design.”

“One-sided deposits enhance user experience but can affect prices when liquidity is low in pools. Users should check quotes in their tools before sending transactions, and interface applications should display this information,” he added.

On March 22, the Ripple team announced the successful integration of XLS-30 AMM into XRPL. Schwartz also joined in the congratulations, highlighting the team’s two-year effort to implement the feature.

1/ The XLS-30 AMM is now live on #XRPLedger!

XLS-30 is an evolution of XRPL’s native DEX, introducing a first-of-its-kind approach to on-chain market-making and liquidity. Learn more here: https://t.co/boW1wX0GDi

— RippleX (@RippleXDev) March 22, 2024

Developers noted that with the integration of AMM, liquidity on trading platforms is now aggregated at the protocol level, rather than fragmented across numerous applications and duplicate pools.

Earlier, on March 23, a failure occurred in the Ethereum Layer 2 network Polygon zkEVM, causing the blockchain launched about a year ago to halt for more than 10 hours.