Neil Hartner, an engineer at Ripple Labs, recently shared a discovery about the XRP Ledger (XRPL) and its functionality for the XRP coin.
The XRPL Liquidity Allowance:
Hartner revealed that the XRPL allows for liquidity provision even for restricted tokens residing on the network. These restricted tokens require a trustline for authorization, making the XRPL Automated Market Maker (AMM) more flexible than other industry entities.
In response to questions, Hartner explained that users can initiate single-sided deposits and withdrawals. This means that providing liquidity for any asset pair, including restricted tokens, will still yield rewards in XRP. However, users can only withdraw assets they are authorized to hold.
Hartner also highlighted the exceptional liquidity rebalancing of the XRPL, emphasizing its unique nature. He described the XRPL as a smart contract network capable of accommodating users with diverse investment interests.
Ongoing XRPL Innovations:
The XRP Ledger is gaining momentum with the development of new protocols and platforms. The XRPL AMM, brought to attention by Hartner, is just one of many protocols being worked on by the core engineering team.
As a competitor to Ethereum and Solana, the XRPL is also making strides in the Non-Fungible Token (NFT) space for users and creators. While still in its early stages, the XRPL has already demonstrated significant utility.
In recent months, the XRPL has undergone several upgrades to position itself as a protocol that can onboard the next generation of blockchain users.