On Friday, a new amendment to the XRP Ledger went live after receiving more than 90% support from validators, introducing the highly anticipated “clawback” feature. This feature allows the issuer of a token to reclaim or “claw back” tokens from user wallets under specific conditions, such as regulatory compliance, fraud prevention, or recovery of tokens sent to unintended addresses.
The update significantly benefits Ripple’s dollar-pegged stablecoin, RLUSD, which now has the ability to be traded directly on the XRP Ledger’s decentralized exchange (DEX). This opens up more liquidity and trading options for RLUSD and is expected to further stimulate decentralized finance (DeFi) activity on the network.
This amendment also enhances the regulatory compliance of XRP Ledger’s Automated Market Maker (AMM) pools, enabling tokens with the clawback feature to be used in trades. Additionally, the “AMMDeposit” transaction type has been modified to prevent frozen tokens from being deposited into the AMM pools, ensuring smoother operation.
XRP Ledger’s built-in decentralized exchange allows users to swap tokens without traditional order books, utilizing liquidity pools facilitated by AMMs. Since the launch of the AMM functionality with the XLS-30D amendment in March 2024, XRP Ledger has seen over $1 billion in swap volumes. January marked a particularly strong month, with the DEX processing more than $400 million in trades.
