- Ripple engineer Neil Hartner unveils single-sided deposits on XRP Ledger, potentially transforming DeFi.
- Single-sided deposits simplify liquidity provision on XRPL’s AMMs, removing the need for assets and trustline requirements.
- The feature adjusts pool ratios automatically, expanding its use to various pools beyond XRP.
Neil Hartner, a senior staff software engineer at Ripple, has uncovered a transformative feature within the XRP Ledger (XRPL). This groundbreaking innovation revolves around the concept of single-sided deposits in XRPL’s automated market makers (AMMs).Read CRYPTONEWSLAND on google news
Hartner’s discovery could revolutionize decentralized finance (DeFi) by allowing users to contribute liquidity to pools even if they don’t possess one of the assets typically required for such pools due to access restrictions. This revelation stems from the understanding that as long as users hold one of the required assets, they can engage in single-sided deposits and withdrawals from the pool, limited only to assets they are authorized to hold.
Users have been eager to understand the mechanics, particularly regarding fees and automatic asset conversion. Hartner clarified that single-sided deposits do not entail the sale of assets. Instead, they adjust the pool’s asset ratio and effective exchange rate. This means users can provide liquidity with just a single asset, and any offers on the order book matching the new exchange rate will be automatically balanced by the AMM during the deposit process.
This newfound capability isn’t limited to XRP pools alone; it extends to any pool where users possess one of the assets involved. This simplifies liquidity provision and eliminates the need for complex trustline requirements, making DeFi more accessible to more participants.
Neil Hartner’s discovery has the potential to be a game-changer in a rapidly evolving DeFi landscape, ushering in a new era of accessibility and efficiency for liquidity providers and traders on XRPL’s AMMs and beyond.
Read also:disclaimer read more
Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.