XRP Ledger’s new AMM unlocks native on-chain yields for liquidity providers.
Ripple’s RLUSD stablecoin boosts XRP trading liquidity and stability.
EVM sidechain integration expands XRP yield opportunities through DeFi.
XRP price is in the low $3 range at the time of writing, close to its multi-year high. This strength comes after a summer rally supported by easing legal pressures. The long-running case between Ripple and the US Securities and Exchange Commission is close to resolution, with both sides moving to dismiss their appeals.
This has greatly reduced uncertainty for investors, opened the door for more institutional participation, and boosted market confidence. Liquidity in XRP trading has improved, and more traders are showing interest in holding or using the token for yield-generating opportunities.
One of the most important developments is the introduction of a native Automated Market Maker (AMM) to the XRP Ledger. This was added through an upgrade known as the XLS-30 amendment and is now fully active.
The AMM allows users to provide liquidity directly on the ledger and earn trading fees when others swap between assets in those pools. Because the AMM is built directly into the XRP Ledger rather than as an external smart contract, it benefits from the network’s fast transaction speed, low cost, and established security model.
To earn yield, users deposit two assets into a liquidity pool, often XRP and another token such as a stablecoin. In return, they receive LP (liquidity provider) tokens that show their share of the pool. Whenever traders swap through that pool, a small fee is charged, and this fee is distributed among all LP token holders.
The new AMM also supports single-sided deposits, meaning users can provide only one asset instead of both, making participation easier. It includes a continuous auction system that allows arbitrage traders to temporarily win the right to trade with a fee advantage, helping correct price differences and reduce the risk of impermanent loss for liquidity providers.
The AMM is part of the XRP Ledger’s core code; it follows the same rules as all other transactions and is validated by the same network consensus. This reduces the security risks that can come from complex external smart contracts and keeps performance consistent.
The upgrade was carefully tested and reviewed before activation to ensure it would not slow down the ledger or disrupt its order-book-based decentralized exchange. This gives liquidity providers and traders more confidence in using it.
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Yields in any AMM depend on the amount of trading volume and the size of the fees collected. With legal uncertainty around XRP mostly resolved, more traders, market-makers, and institutions are likely to join.
As more assets are issued on the ledger, especially stablecoins, trading activity could increase, leading to higher fees for liquidity providers. Ripple’s launch of RLUSD, its dollar-backed stablecoin, adds an important building block for liquidity. Stablecoin pairs usually see high volumes, which can lead to steady and attractive yields for those who provide liquidity.
Stablecoins play a big part in supporting healthy on-chain yield markets. They provide a reliable pricing base, reduce volatility within pairs, and encourage market-making strategies that work in both rising and falling markets.
RLUSD’s presence on the XRP Ledger makes it easy to create pools with XRP or other assets, giving traders a safe and liquid path to swap in and out of positions. Over time, this can deepen liquidity, tighten spreads, and provide liquidity providers with a more predictable income stream.
In June 2025, the XRP Ledger ecosystem launched an Ethereum-compatible sidechain. This EVM sidechain allows developers to deploy Ethereum-style applications while using XRP as part of the process.
The XRP ecosystem can now host lending platforms, vaults, and other DeFi products that can be combined with the on-ledger AMM to create layered yield strategies. For example, liquidity providers might earn AMM fees on the XRP Ledger and then deploy those earnings into lending pools on the EVM sidechain for additional returns.
High XRP price in the cryptocurrency market depends on the situational conditions. When trading volumes are high and volatility increases, liquidity providers can earn more from fees. In quieter periods, returns can fall.
The XRP Ledger’s AMM allows liquidity providers to vote on pool fees, giving them some control over the balance between attracting more traders with low fees or earning more per trade with higher fees. The combination of native AMM income, stablecoin trading pairs, and additional DeFi incentives from the EVM sidechain could help maintain attractive returns over time.
Providing liquidity is not without risks. Impermanent loss occurs when the price of one asset in the pool changes significantly compared to the other, which can make the value of the pooled assets lower than simply holding them.
The AMM’s auction system helps reduce the impact, but cannot eliminate it. The EVM sidechain also introduces smart-contract risk, as complex DeFi applications can have vulnerabilities. Regulatory changes could also affect how stablecoins operate or how easily exchanges can connect to the XRP Ledger.
With the SEC case nearing its conclusion, XRP is in a stronger position to attract professional market participants who avoided it during the uncertainty. Institutional market-makers and liquidity providers can now plan long-term strategies involving XRP, which could greatly increase liquidity in AMM pools and drive more fee income for all participants. This legal clarity is as important for yield growth as the technology itself.
The next steps for growth and a higher XRP price prediction include integrating AMM features into more XRP-compatible wallets, so users can add or remove liquidity directly from their wallet apps.
More data on pool performance, such as historical yields and fee structures, will help both retail and institutional participants make informed choices. Custodians and prime brokers in the crypto space are also expected to add support for XRP Ledger AMM functions, allowing large funds to participate without building new infrastructure from scratch.
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XRP’s path to higher yields is supported by three major developments now in place. First is the native AMM, which allows participants to earn a share of trading fees directly on the ledger. Second is the growth of stablecoin liquidity, led by the launch of RLUSD, which supports deep and active markets. Third is the EVM sidechain, which brings a wide range of Ethereum-style DeFi strategies into the XRP ecosystem. Together, these create an environment where both retail and institutional investors can find opportunities for sustainable on-chain income.
If adoption continues to grow, liquidity pools deepen, and more DeFi applications arrive, XRP could become one of the more competitive ecosystems for yield in the crypto market. The combination of strong infrastructure, legal clarity, and active market participation gives the XRP Ledger a clear foundation for the next stage of growth.