Industry Research Shows Upcoming XRPL AMM Outperforms Uniswap on Multiple Metrics

A new research from industry leaders has proven that the upcoming XRP Ledger Automated Market Maker (XRPL AMM) outperforms traditional AMMs such as Uniseap on multiple metrics.

According to the paper, the research was carried out by some prominent names in the industry, including Dr. Paolo Tasca, a renowned economist, Chairman of the DLT Science Foundation and Co-Chair at Hedera; and Dr. Yebo Feng, Computer Security Expert and Research Fellow at NYU Singapore.

Other notable names on the list are Walter Hernandez, Firas Dahi, Aanchal Malhotra, and Jiahua Xu. XRP community influencer Eri recently spotlighted the research paper in a post on X.

📢 Published Today
Automated Market Maker on #XRP Ledger

Research reveals XRPL-AMM, leveraging (HARVESTING) market volatility outperforms Uniswap in slippage & impermanent loss reduction, pace of price synchronization, & overall operational efficiency

Researchers include Dr.… pic.twitter.com/DjoQWql9f6

— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) December 22, 2023

The paper reveals that the research aimed to test the XRPL AMM to assess its ability to address issues and limitations observed with traditional AMMs, especially those on Ethereum.

Some of these issues include large impairment losses, high transaction cost, price synchronization challenges, and substantially high slippage. The goal of the research was to evaluate the possibility of the XRPL AMM tackling these problems by leveraging the features of the XRP Ledger.

In the research, the industry leaders carried out an assessment of the XRPL AMM’s underlying infrastructure involving the AMM’s participants (users and liquidity providers), the native XRPL DEX, and inherent risks such as implicit economic costs. They also analyzed these factors in comparison with other AMMs like Uniswap.

XRPL AMM Beats Uniswap

Based on a comprehensive evaluation, the results confirmed that the XRPL AMM beats other established entities such as Uniswap, by significantly reducing transaction costs and impairment losses.

The XRPL AMM also boasts better price synchronization and high operational efficiency, the research paper says.

Moreover, the paper further recommended the XRP Ledger AMM as a better alternative to the existing AMMs in the market, including Uniswap. The use of Uniswap in the evaluation is pivotal, as the Ethereum-based decentralized exchange has grown to become the dominant DEX, commanding millions in trade volume.

Despite its promise, the XRPL is still yet to welcome the native AMM, with the amendment still up for voting. As of press time, up to 17 validators have voted in favor of the amendment, while 18 validators have retained a “Nay” vote. Some XRP community members have expressed concern about the delay in approving the amendment.

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