RippleX identifies glitch in XRP Ledger, halts deposits

RippleX has reported a technical glitch affecting some Automated Market Maker (AMM) pools on the XRP Ledger (XRPL). 

The glitch has disrupted transactions within these pools. The RippleX team has alerted users through a post on X, advising against new fund deposits into AMM pools. Those holding liquidity provider (LP) tokens have been advised to withdraw their funds till the issue is sorted. 

These preventive measures are a bid to avoid further complications due to the gitch.

AMM pools serve as liquidity sources in decentralized exchanges (DEXs). They allow asset trading without traditional order books. Traders can swap assets with the pool without involving another user. The pools hold various asset reserves.

The glitch impacts transaction execution in some AMM pools on XRPL, causing them to be processed incorrectly. As such, the basic functionalities of the pool are crippled, necessitating swift resolution. 

The developers are currently collaborating with community members to actively work on resolving the glitch. 

The issue has prompted several XRPL pool-utilizing projects to suspend their connections. Sologenic, a platform for trading tokenized stocks on the XRPL, halted deposits following RippleX’s announcement. Anodos, known for its XRPL interface AnodoSwap, also disabled its service.

Community reactions have been mixed.

Some users voiced concerns about the network’s reliability following the glitch. One user expressed their frustration regarding the situation, claiming that the “chain is dead.” However, others were a bit more supportive, with some lauding the RippleX team for their transparency on the matter.

The XRPL AMM went live on March 22 after the  XLS-30D amendment was passed on Jan. 31. According to XRPScan, this new feature led to the creation of over 1,000 liquidity pools, significantly diversifying the assets available. Among these, one of the largest liquidity pools is the PCSH/XCASH pair. The AMM account for this pair, known as “rM8W….cX1h,” boasts a balance of 13,136,629,099.06384 LPToken.

David Schwartz, Ripple’s CTO, described the launch as the start of a “longer road” from the initial rollout to upcoming milestones. 

The complications have arisen despite rigorous testing by the RippleX developers. Back in Jan., the team reported discovering an “issue” that could prevent the immediate execution of  AMM transactions. The issue arose when the trading fees were set below the minimum threshold of 0.01%.