Definition and scope
Automated Market Makers on the XRP Ledger addresses a distinct part of dex, amms, and native defi. Learn how two-asset pools quote liquidity alongside the ledger's order books.
The XRP Ledger includes exchange and liquidity functions at the protocol layer. These topics explain how order books and AMMs interact, how users express prices and limits, and where liquidity, slippage, fees, and smart operational controls matter. Protocol liquidity does not guarantee price, depth, returns, legality, or issuer performance. Examples are mechanical, not trading advice.
How it works
An XRPL AMM holds two assets, issues LP tokens representing pool share, and quotes along a constant-product curve. Its liquidity competes with order-book offers through the payment engine.
- AMM: verify this field, object, or component against the cited protocol documentation.
- constant product: verify this field, object, or component against the cited protocol documentation.
- LP token: verify this field, object, or component against the cited protocol documentation.
- trading fee: verify this field, object, or component against the cited protocol documentation.
Practical example and checks
A liquidity provider evaluates both assets and issuer risks, deposits a balanced amount, records received LP tokens, and monitors pool balance, fee, and auction-slot state.
For production use, preserve the exact signed or queried data, record the network and validated ledger reference, and compare the result with the current primary documentation before changing off-ledger state.
Open the related live demo or evidence lab →Limits, risks, and common confusion
AMM participation can experience impermanent loss, asset devaluation, issuer controls, and transaction failure. Protocol integration is not a yield guarantee or investment recommendation.
Protocol liquidity does not guarantee price, depth, returns, legality, or issuer performance. Examples are mechanical, not trading advice.
Current network status
Enabled on XRPL Mainnet. AMM was enabled on XRPL Mainnet in feature responses from both official public servers at review time. Client and service support can still vary.
Status reviewed 2026-08-23. Amendment-dependent behavior must be rechecked against the network's live feature state before operational use.