Ripple's stablecoin, RLUSD, recently experienced a 4% deviation from its 1:1 peg to the US dollar, raising questions about its stability. The XRP Ledger community is proposing an Automated Market Maker (AMM) pool for the XRP/RLUSD pair to address this volatility and ensure consistent liquidity. The move aims to stabilize RLUSD and mitigate risks associated with impermanent loss for liquidity providers.
ecosystem is no stranger to innovation, but a recent event has added urgency to upcoming developments. Ripple USD , Ripple ’s stablecoin launched in December 2024, unexpectedly strayed from its 1:1 peg to the U.S. dollar. Briefly trading with a 4% deviation, this unusual behavior has sparked questions about its stability and the way forward. RLUSD is designed to be stable and liquid. It operates on the XRP Ledger and Ethereum.
Amid this, the XRP Ledger community is preparing for a critical vote to introduce an Automated Market Maker pool for the XRP/RLUSD pair. These AMMs, powered by liquidity pools and algorithmic pricing models, are designed to smooth out price fluctuations and ensure consistent liquidity. The move could be a key step in stabilizing I want you to be careful if you race to provide liquidity.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions.
Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management. He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.
RLUSD Ripple Stablecoin Depeg AMM XRP Ledger Liquidity Impermanent Loss
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ripple Issues 'Say Hello to RLUSD' Post With Access to RLUSD WhitepaperRipple publishes RLUSD-related post after releasing stablecoin at end of last year
Read more »
Ripple's RLUSD Briefly Breaks Peg with USD, Market Dynamics Cited as CauseRipple's stablecoin, RLUSD, unexpectedly surged past its 1:1 peg with the US dollar, highlighting the challenges of stablecoin stability in volatile markets. The price fluctuation, attributed to thin market structure, caused RLUSD to briefly trade at $1.04. Despite the temporary disruption, Ripple's CEO Brad Garlinghouse believes it is a short-term issue linked to the XRP/RLUSD market dynamics. The XRP Ledger community is set to vote on implementing an Automated Market Maker (AMM) pool to enhance RLUSD's price stability.
Read more »
RLUSD Minting Activity Surges, Reflecting Growing Demand for Ripple StablecoinRipple's stablecoin, RLUSD, continues to experience significant growth with recent large-scale minting events signaling a strong demand for the asset. This expansion coincides with a broader trend of increased interest in stablecoins as a safe haven in the volatile cryptocurrency market.
Read more »
Ripple USD (RLUSD) Goes Live: A New Stablecoin for the XRP EcosystemRipple USD (RLUSD), a centralized stablecoin pegged to the U.S. dollar, launched in December 2024 after months of testing. This guide explores the features, potential impact on the XRP price, and role of RLUSD within the XRPL-based DeFi ecosystem.
Read more »
8,104,394 Ripple RLUSD Stablecoin in 24 Hours: What's Happening?Ripple stablecoin sees substantial movement in last 24 hours
Read more »
Ripple's Stablecoin RLUSD Faces Volatility Concerns Despite Exchange AdoptionRipple's stablecoin RLUSD, launched in December 2022, has been adopted by several cryptocurrency exchanges. However, the stablecoin has experienced significant price fluctuations, raising concerns about its stability. While Ripple emphasizes its 1:1 peg to the US dollar, experts warn of potential volatility due to speculative trading and decentralized exchange activity.
Read more »