Panos Mekras says the XRPL wants high-quality belongings like stablecoins and RWAs to repair stagnant AMM liquidity regardless of rising pool depend.
Notably, as of Could 7, 2025, XRPL’s automated market maker (AMM) ecosystem has recorded a speedy improve within the variety of liquidity swimming pools, reaching 19,782. Nevertheless, XRP liquidity throughout these swimming pools has remained stagnant since early 2025, hovering round 13.39 million XRP.
The disparity between pool creation and precise capital influx has raised considerations throughout the XRPL neighborhood. Panos Mekras, co-founder of Anodos Finance, highlighted the problem on X, noting that whereas token and pool numbers have surged, significant progress in XRP-backed liquidity has did not materialize.
There may be an apparent problem: XRPL’s AMM has been very stagnant and never a lot new XRP has been added for months, whereas the variety of swimming pools and nugatory tokens continue to grow. The one answer is extra prime quality belongings – stablecoins and RWAs (as quickly as potential) – mixed with… https://t.co/pjQlQvSWuB
— Panos 🔼{X}🇬🇷 (@panosmek) Could 7, 2025
Asset High quality Stays Central to Development Challenges
In response to Mekras, the increasing pool depend is being pushed primarily by tokens with restricted utility. He noticed that many newly issued tokens supply little to no worth, but proceed to extract liquidity from the ecosystem.
He argued that introducing increased high quality belongings—comparable to stablecoins from high issuers and real-world belongings (RWAs)—is the best way to go. Moreover, Mekras emphasised the necessity for platforms that may improve onboarding and person interplay with XRPL. In his view, each builders and customers should demand higher requirements from new initiatives with the intention to forestall additional fragmentation of liquidity.
AMM Pool Composition Raises Usability Considerations
One person on X requested Mekras about swimming pools involving two issued tokens—comparable to RLUSD paired with a memecoin or one other fiat-pegged asset. The query centered on the accessibility of such swimming pools and whether or not they supply significant utility.
Mekras responded that their worth depends upon demand and liquidity. He warned that low-activity swimming pools can divert sources away from top-performing swimming pools.
So long as there’s sufficient demand and liquidity, that is good. In any other case you might be simply splitting liquidity that would go to the highest swimming pools. Secure to steady swimming pools are nice, however we’d like extra high stablecoins from high issuers because it looks like most individuals don’t want or belief…
— Panos 🔼{X}🇬🇷 (@panosmek) Could 7, 2025
Regardless of acknowledging that stable-to-stable swimming pools could possibly be helpful, he identified that person belief in current stablecoins from GateHub and Bitstamp stays low.
Comparisons with Different Chains
Whereas exercise on different blockchains continues to see progress in complete worth locked (TVL), XRPL’s liquidity has remained comparatively unchanged. Mekras famous that competing chains have already attracted billions in TVL and at the moment are seeing renewed momentum.
In distinction, XRPL’s low liquidity persists. He said that the ecosystem ought to already rank among the many high chains by liquidity, but lacks the presence of top-tier stablecoin issuers.
A technologist, Hussein Badakhchani, who first referred to as consideration to this rising concern, responded that whereas high-quality belongings are necessary, enhancing the charge construction to higher incentivize liquidity suppliers may be efficient.
Proposal to Increase the AMM Charge Cap
Badakhchani’s options embrace a proposal to boost the AMM charge cap from 1% to 2.5%, permitting liquidity suppliers to vote for increased returns. One other change entails changing the prevailing single-fee mannequin with a extra granular, operation-specific construction protecting XRP and token deposits and withdrawals individually.
To assist this, a revamped liquidity supplier (LP) voting mechanism was proposed, designed to accommodate the multi-tiered charge mannequin.
The options additionally name for excluding blackhole wallets from LP vote calculations to stop inactive addresses from impacting charge changes. To make sure continuity, he advisable a backward-compatible migration technique for current swimming pools.
