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Hello this is Matt on the moon Lambo Channel it has happened XLS 30 the Automated Market maker or amm for shorts Is Live and this is one of those things Where I just think longterm it's it's Just one more thing that's going to help To ensure the long-term viability of xrp And The xrp Ledger and it's it's one More thing that will make the xrp Ledger That much more desirable to build on top Of I mean you can tokenize whatever the Hell you want on The xrp Ledger of Course but as is frequently the case There's liquidity issues you know most I Mean I'd argue that most large cap coins Aren't like that liquid right because Even 15 years into this asset class it's Still kind of close to its infancy right I would say so it's going to be way way Way bigger fast forward a decade or two Or three and so then if you consider you Know individual coins tokenized on The Xrp Ledger itself via the decentralized Exchange ah I mean if you if you want a Bunch of something you know you might Result in some slippage right so um we Now have the automated Market maker and Should help alleviate some of that and I Just it's based on what I've read to This point and I haven't I haven't Tinkered with this myself yet admittedly Um from what I've read including stuff From David Schwarz and I'll share with
You a little bit of from what he he had To say um it it seems like it's going to Make it much more attractive for you Know defi projects And and even non-financial services to You're Building anything um this should Make it more desirable not literally I Mean there there are certain Applications specifically but uh I know A lot of people and this is always the Case thought well you know when this Thing when this thing goes live it's Just going to send the the price of xrp Soaring and I don't know that most People actually believe that but I did See some of that on social media I saw Some people on social media platform X Kind of disappo war that the price of Xrp didn't just go uh I'm not Surprised you got to understand here Like it's the same people in the same Crypto ecosystem doing their stuff most People paying attention to you know dog Whff hat and stupid ass meme Coins what would what would make you Think that most of the given that we're Not getting a bunch of new retailers on Board now there are some there are some But given that that's not broadly What's Happening Here what makes you think that There there would just be the sudden in Of people jumping into xrp specifically Because of this like Who's do they even know this happened
Like we in the xrp community are aware Of this is is the are the rest of crypto Participants not in our community even Aware of this no and it's not making Gigantic news but you know you should Care about it because you can generate Income with your xrp and I do want to Talk about that this will allow you the Everyday xrp holder to generate a Passive income just by offering up XR RP As Liquidity and so um and you can see Right here this is just from xr. org I've highlighted this in the past year Create an automated Market maker an Automated Market maker can be an Efficient way to facilitate exchanges Between two assets while earning its Liquidity providers passive income and Then they provide a tutorial for such um But uh here's a little bit of what David Schwarz had to say x ls30 live on Mainnet amm integration on xrp Ledger is Here and I thought it'd be worth sharing A just a little bit of what he had to Write here about this um given that he Is one of the creators of The xrp Ledger And ripple CTO of course the integration Of the automated Market maker Into The Xrp Ledger has finally arrived bringing With it a new paradigm for liquidity and Trading on the network the xrpl Decentralized exchange or Dex for short Currently provides liquidity exclusively
By manual Market making and Central Limit order books or club for short Which sounds really satisfying clob the Allnew integration adds a non-custodial Amm as a native feature to the xrpl Dex Which offers an opportunity to earn Returns to those who provide liquidity To the amm and decreases slippage when Trading the long tail of tokens yeah and So obviously if there's more liquidity Then there would be less of an Opportunity for slippage so again that's Just one of the benefits here and and That's the type of stuff that'll make it More desirable to build stuff on The xrp Ledger if you're tokenizing something uh That's a boost right out the gate right You have an entire thriving ecosystem It's been around for over a decade but This should amp it up not all in one go But over a long period of time yes this Is one of those things that I I do Believe uh it's exciting because it will Help to ensure the long-term viability Of xrp and The xrp Ledger and draw and More developers it should happen it's Going to be a slow drip over a span of Years and decades but uh it it Materially matters I do believe That um and by the way I I am going to I Might start playing with this so here's The deal though I have my xrp which I've Been holding for over six years um I Stopped accumulating as of October 2020
Because it's my largest holding even by A lot even today um even though I've Bought a bunch of other stuff since then It's it's big but I set up strict rules For myself when it comes to investing in Crypto once I buy stuff I don't touch it It's allocated for just being held and Doing nothing until I'm enticed to sell That's it there are no exceptions I'm Very with myself on this so if I'm going To do this I will have to if I'm going To start tinkering with this which I've Been thinking about um you know just I'm So so busy and then it's not going to Change my strategy for this bull market But I am curious admittedly like I am Curious because if Like if this is what I'm hoping it is This could make for like over the long Ha like this actually could be of Material significance like to me Personally if if I offer up liquidity Over a span of like what if I do over a Span of decades but but what I want to Do first is I'd have to purchase new xrp Because again the xrp I'm holding now It's allocated to do nothing until I Sell it that's it that's it I'm very Strict about that but um I've considered Just buying a small bit just so I could Start playing around with this thing Myself and see how it works and plus on Top of that you know even though in all Likelihood everything's fine and the
Code works when something's brand new Right at the gate do you want to put Your life savings into it not that you Not that you should do that anyway but Um you know just in case there's a bug You know um I think no so if you're Talking about playing with small amounts And then letting it develop a track Record make sure it's success and then You can have a higher level of Confidence that there's not some sort of Crippling bug that's going to make you Lose all of your monies uh yeah and so I I am genuinely interested in in perhaps Even for myself doing this but I'm going To admittedly need to dabble a little Bit with this first and get comfortable With it and understand on a on a more Personal level exactly how that that Works um you know it's the same thing Jumping into crypto like um even though I hadn't done sufficient research yet I Started buying cryptocurrency just Because I wanted to play around with the Exchanges see how it worked just kind of Dip my toe in the water that's what I'm Thinking I want to do here because it Sounds promising there's a reason that David Schwarz and so many others are so Excited about this it's a real thing Like you can make if you could make a Ton of money on this so I might be more In um enticed to especially after the Bare Market once I've made my money
Assuming things don't go off the rails Here and I actually finally do get my Life changing wealth my my third bull Market in crypto um it would be and this Is one of the things where I'm and I'll Be talking about on YouTube if I do this Uh putting a more meaningful amount into This thing but again I need to dip my Toes in the water and get some Experience with it firsthand that's just And that's that's reasonable right you Know just don't just jump in a whole hog Here uh then David Schwarz also wrote While X ls30 represents a significant Moment and a landmark in the xrp ledgers Evolution it is also only an initial Step towards bolstering the broader defi Ecosystem designed as a native protocol Xs30 allows developers to integrate with The amm and establish their own trading And liquidity provision inter faces Ultimately the success of EXs 30 will be Determined by the broader ecosystem and The Readiness of defi leaders in the Space to attract liquidity and utilize The new functionality the excitement is Certainly building that's certainly true And I don't want to read this this whole Thing but I did want to jump down to Here um because he was talking about use Cases and Applications um and this is is is Typically the case in situations like This it's more conceptual and kind of
Broad and and so in terms of spe Specifically what would be built we're Going to have to let time pass and see What people actually do but it's very Clear the the potential is there and David Schwarz firmly believes that so he Has two categories that he writes about Here Financial applications and non- Financial integration so under Financial Applications he writes the following the Integration of the amm or on xrpl opens Up exciting possibilities for financial Applications developers can create defi Services like trading platforms yield Farming applications and more that Leverage the efficiency and liquidity of Amm pools the ability to easily swap Assets and provide liquidity directly on The Ledger enhances user experiences and Can drive adoption of a variety of Services and then under non-financial Integrations he wrote The Following Beyond Financial applications the amm Functionality can enhance non-financial Xrpl applications by simplifying Transactions that involve asset Exchanges for example platforms offering Nfts or other digital Goods can Integrate amm to facilitate seamless Asset swaps improving the user journey And expanding the use cases for their Offerings so we'll see how that Manifests itself but that this is the Starting point that's just happened so
We'll see how it go so I'm I'm excited About it I I want to I I'm curious to You know what the actual experience is I'm sure that some of you listening by Now actually have even though most People probably haven't yet Um this is a real thing there's a the David Schwarz has been talking about This for so and not just him so many in The community but I mean to see David Schwarz getting excited about this like I remember half a year ago he was asked In an interview he like so what do you Think the most exciting thing is going On in basically the xrp ecosystem and He's like uh the upcoming automated Market maker you know assuming that it Was to get ped which we now know it did So and there's reasons for this he Doesn't normally just speak about that About random stuff here um and so there Is this headline this is from March 11th Of this year passive income with xrp Ripple CTO provides Clarity uh David Schwarz Ripple CTO Recently clarified the prospect of Generating passive income with xrp in The upcoming xrp Ledger amm schwarz's Comments came in response to a Disclaimer presented by prominent xrpl DL validator vet notably there have been Reports on the numerous benefits that The upcoming amm could bring to The xrp Ledger Community including the
Opportunity to earn passive income and Folks is true you legitimately can earn A steadystream passive income uh it just It's not the same as if you're staking Though and that's what vet was getting At so let me just continue through this As the amm amendment secures the minimum Validator consensus threshold again vet Damed it necessary to comment on this Prospect according to him the upcoming Amm would not provide passive income for Xrp investors just for holding their Tokens and so folks it's he's not saying That there wouldn't be passive income He's saying that you wouldn't get it Just for for holding the tokens it's not The same as staking that's what he's Getting at he emphasized that investors Would need to provide liquidity by Handing out their xrp tokens to any amm Instance these xrp tokens would be Available as liquidity for Market Participants looking to trade on the amm Notably vets disclosure aimed to debunk Claims that xrp investors could secure Passive income by holding their xrp Tokens instead of depositing them in Liquidity pools in response a proponent Questioned whether being a liquidity Provider does not present passive income Opportunities the Ripple CTO chimed in Clarifying that while investors could Earn passive income for simply providing Liquidity the mechanics involved with
The amm's passive income opportunity are Not the same as what Market participants Witness with traditional staking and According to Schwarz when it comes to Passive income generation different Mechanisms come into play and they Operate in different ways in the case of Xrp if you want to generate passive Income using the amm system you would Need to trade your xrp for claims Against the amm pools while you can Reclaim xrp on demand the amount that You get back may not necessarily be the Same as what you put in and by the way Just be clear they're talking in terms Of United States dollars so let me get a Little bit further here because they're Getting that impermanent loss and in Addition to that I'll also say before I Forget this is another reason that I Would not take my existing xrp and use It here I I think there would be Implications I need to talk to my Accountant but if you're talking about Handing out that xrp for liquidity pool Uh I'm assuming that it resets the clock At least here in the United States but I I don't know that definitively but it Sounds like that would be because there Are actual transactions I don't know why It wouldn't be to be honest like I I Can't think of a reason it wouldn't Reset the clock in that sense uh so I Ain't doing with that my I ain't doing
That with my hoddle bag let's just say That Um but but anyway uh peace Continues Um while you can reclaim uh xrp on Demand the amount you get back may not Necessarily be the same as what you put In in other words this process involves A level of risk and you should be aware Of it before proceeding the amm operates Under a different Mech uh mechanic than Staking so it's important to understand The Differences uh the differences between The two uh if you're considering Generating passive income from xrp Another proponent sought clarification Citing schwarz's previous comments in Which he assured that users would always Get back what they put into the Liquidity pools responding to this the Ripple CTO clarified that it depends on What the individual defines as value and This is where it gets to the nuts and Bolts of this like what's risk the risk Of impermanent loss well check this out Notably while Market participants could Get back more xrp than they invested Into the liquidity pool if xrp's value Collapsed when their assets were in the Pool they would receive less worth for The for xrp despite getting more of a Quantity of xrp this is the concept of Impermanent loss yeah so it depends you
Could end up with more xrp but what's That worth in United States Dollars so in the end it could be worth In United States dollars or whatever Your fiat currency is less but you in This hypothetical you you'd have more Xrp and so it's kind of like do you Believe xrp will be worth more or less Over time because having more xrp over Time to me sounds appealing which is why I wouldn't worry about the volatility Like if I decide if I tinker with this Thing and I'm like yeah this is is Awesome and I I want to do it and then I Gain confidence and it's been more Battle tested after some more time has Passed cuz I would want more time to Pass before I put meaningful money into This I just I just I want the code out There make sure that I can reasonably be Confident there's not bugs even and I Have no reason to think there's bugs now But you know just I want time to pass I Want it to be tested uh yeah I I mean You let that happen i' I'd be certainly Willing to put more money in and I Wouldn't worry about uh impermanent loss Because I'm a long-term thinking type of Guy like I'm just that's just the way I Look at it I just I I I'm not I'm not Concerned about that in the least and I Even if I sell all my xrp I'm going to Buy back in once once the once the Market Peaks and then we go back into a
Disastrous bare Market which is an Inevitability you know not that that's Going to be happening anytime soon we Need to have new alltime highs first we Need the fun part first but yeah yeah i' I'd be interested in this for sure so uh Lots more to learn this is brand new Though this just this just happened Friday so lots more to learn uh if you Guys have tinkered with this personally I' be I'd just be really curious and Love to hear your perspective if you Want to share some comments uh in the in The comment section below I'd be very Curious to hear what your experiences Have been um but again if I do I do need To finally buy some new xrp which I Haven't done in over three years so uh But yeah I could I could buy a small bag And start messing with it and see how it Goes I'm not a financial adviser you Should not buy or sell anything because Of anything I say or right that would be A very very very bad idea until next Time to the Moon Lambo
