Ripple Devs Give Brief XRPL AMM Update

Ripple developers have revealed significant news regarding the XRP Ledger’s Automated Market Maker (AMM).

According to a recent announcement by RippleX via X, the AMM bug fix is now open for scrutiny on GitHub. It is slated to be incorporated into the forthcoming 2.1.1 version of Rippled. RippleX has hinted at an imminent blog post offering comprehensive insights into the incident and outlining future steps.

The AMM bug fix is open for review on GitHub and will be in the 2.1.1 release of rippled. We’ll also publish a blog post tomorrow with more info about what happened and next steps. https://t.co/Z5v0cTvOvF

— RippleX (@RippleXDev) March 27, 2024

Vet, a validator for XRPL dUNL, tweeted that the public can get the hotfix for the XRP Ledger Automated Market Maker along with the proposal for rippled 2.1.1.

The hot fix for the XRP Ledger Automated Market Maker is now public and rippled 2.1.1 is proposed !

The bug involves how the DEX payment engine routes liquidity through AMM pools and order books in some complex payment path scenarios that didn’t execute as intended.

More…

— Vet (@Vet_X0) March 27, 2024

Users are warned not to deposit money into the AMM until the bug is fixed and to take out their cash. As soon as the AMM Amendment went into effect on Mar. 22, there was a problem: a community member found mistakes in some AMM pools that showed deals that didn’t go as planned.

Community Unites to Resolve DEX Payment Engine Flaw

RippleX, Orchestra Finance, tequ, and other members of the XRP Ledger community quickly started working together to find the root cause. They found that the problem was how liquidity was routed through AMM pools and order books in complicated payment path scenarios in the DEX payment engine.

Now that the code is public, I urge you once again to remove your liquidity. The potential gains might not be worth the risk. https://t.co/QoHdlaPmPV

— Daniel “No” Keller (@daniel_wwf) March 27, 2024

This bug has made it harder for the DEX payment engine to work as it should in some complicated payment path situations. A solution has been found, reviewed, tested, and may soon be ready for prompt release.

However, implementing the fix necessitates an amendment to the XRP Ledger protocol, requiring network validators to vote on and sustain over 80% support for two weeks before activation. Until the fix garners network-wide implementation, users are advised to redeem LP tokens instead of injecting new funds into AMM pools.