Overview

The XRP Ledger has activated a clawback amendment following validator support exceeding 90%. This amendment facilitates trading for tokens such as Ripple’s RLUSD stablecoin, enhancing liquidity and trading channels on the XRP Ledger’s decentralized exchange (DEX).

Key Points

• The clawback feature allows issuers to reclaim tokens under specified conditions, often for regulatory compliance or asset recovery.
• This update enhances the regulatory framework of the XRP Ledger’s Automated Market Maker (AMM).
• The amendment modifies the AMMDeposit mechanism to prevent the deposit of frozen tokens, thus protecting the market integrity.

Implications

With the introduction of this clawback capability, trading options increase for RLUSD while promoting decentralized finance (DeFi) activities on the network. The XRP Ledger supports a DEX that enables users to swap tokens without traditional order books, reflecting a significant advancement in market operations.