Coin Edition -
- Ripple CTO David Schwartz elaborates on the notion of XRPL AMM, ensuring a secure investment.
- Anodos founder Panos uses the analogy of a self-running market stall to compare with AMM.
- Though AMM does not guarantee any yield, it boasts the ability to turn volatility into yield.
In an insightful conversation with Panos, the founder of Anodos Finance, Ripple CTO David Schwartz elaborated on the upcoming implementation of XRPL AMM (Automated Market Maker). In a detailed analysis, Schwartz shared insights on the secure investment guaranteed by XRPL AMM.
The conversation was ignited by Panos, who brought forward an analogy of a self-running market stall to compare with AMM. He clarified that the AMM adjusts prices according to trading activity, just like traditional market products’ prices are dependent on supply and demand.
An AMM is like a self-running stall at a market that always has items to trade. The price of items isn't set by any one person but is determined by how much of each item is available. If lots of people want to buy a particular item and start trading their items for it, the AMM…— Panos