Amid dealing with the legal complications with the US Securities and Exchange Commission, Ripple’s XRP Ledger (XRPL) encountered a technical glitch. RippleX reported an issue affecting certain Automated Market Maker (AMM) pools on the Ledger. However, it assured that the team is taking the required measures to overcome these issues.
Ripple CTO jumps in
David Schwartz, the Chief Technology Officer at Ripple, in a post clarified that the identified issue is not caused by the single-sided deposit feature. The mentioned feature is an intended functionality of the AMM design. However, he asked to care for the users who are checking for price impacts before transactions. Ripple CTO even suggested that the front end apps should display this information.
This is not the update in this technical glitch scene. Earlier, RippleX reported that it identified a discrepancy in some AMM pools. They assured that an engineering team is working on resolving the issue with the community participants.
It is being highlighted that as a precautionary measure, users have been advised against depositing new funds into AMM pools. While those who are holding LP tokens are urged to consider withdrawing them until the issue gets resolved.
As we dig, further updates shared by RippleX show that the discrepancy affected how the DEX payment engine routes liquidity through AMM pools and order books. It took them through complex payment path scenarios. However, it added that the team was in the middle of a proposed fix, which will later undergo the amendment voting process.
What’s going on?
Addressing the issue, RippleX showed their appreciation for Sologenic, Anodos Finance, OrchestraFi, DexFi Pro, and others. These were the participants who came in with their swift response in spreading awareness. They also helped in taking the required actions to keep in line with the deposit functionality issue.
Ripple CTO raised caution regarding single-sided deposits. He noted that the potential for loss if the AMM lacks sufficient liquidity compared to the deposit size. Schwartz advised users to check with warnings about slippage and consider alternative options if high slippage is recorded.
He further gave out the strategies to minimize risks linked with single sided deposits. This includes depositing equal values of both assets the AMM trades. However, this could occur while conducting small single sided deposits into reasonably liquid AMMs.
