David Schwartz Reveals New XRPL Features and Their Impact on XRP Price

The XRP Ledger is on the verge of a major upgrade, incorporating two highly anticipated features: the Automated Market Maker (AMM) and the refund function. David Schwartz, the company's CTO, has expressed his excitement about the upgrade, eagerly anticipating its implementation. Additionally, Schwartz has drawn the community's attention to a new feature for smart contracts in XRPL: he confirmed that an Ethereum Virtual Machine (EVM) sidechain on XRPL will soon be launched.

When asked if AMM could affect the price of XRP, Schwartz remarked, "It's true that if AMM relies mainly on XRP holders, it could lead to a short-term increase in selling pressure. I doubt it will have a significant impact and may even be outweighed by people going in the opposite direction." The CTO also mentioned that in theory, AMM should reduce volatility by selling during price increases and buying during price declines, essentially turning volatility into profitability.

According to Schwartz's reference, the EVM sidechain will operate in tandem with XLS-38d. The EVM sidechain is a crucial protocol for XRPL, as it will connect the network to the broader Ethereum ecosystem. Since Ethereum is recognized as a major liquidity hub in the blockchain space, finding an entry point to connect with it will contribute to broader positive growth for users in the long run.

With the upcoming launch of the EVM sidechain, a new era is bound to begin, aligning the protocol with existing DeFi giants.

Furthermore, Ripple X developers discussed the concept of one-sided deposits within the XRPL's Automated Market Maker (AMM). This innovation allows users to provide liquidity to pools even if they cannot hold one of the assets required for a specific pool due to limited access.

Developer Neil Hartner clarified that one-sided deposits do not necessitate the sale of assets. Instead, they adjust the pool's asset ratio and the effective exchange rate. This means users can provide liquidity with just one asset, and any orders in the order book matching the new exchange rate will be automatically balanced by the AMM during the deposit process.

This new feature is not limited to XRP pools; it extends to any pool where users hold one of the involved assets. This simplifies liquidity provision and allows a greater number of participants to engage in DeFi without complex trust line requirements.