- Panos Mekras addresses concerns of XRP transitioning to a stablecoin amid the awaited XRPL AMM.
- He clarifies that XRP’s fundamental characteristics remain unchanged despite the introduction of the Automated Market Maker.
In recent deliberations within the XRP community, Panos Mekras, co-founder of Anodos, provided clarity on concerns regarding the future trajectory of XRP in light of the impending XRPL AMM introduction.
Mekras, addressing speculations, emphasized that XRP’s core features are unalterable. Despite the advent of the XRPL AMM, he affirmed that XRP will retain its identity as the native coin of the XRPL, embodying decentralization and unimpeded trade.
Responding to queries about the XRPL AMM potentially stabilizing XRP’s value, Mekras highlighted that Automated Market Makers thrive on market volatility, offering liquidity providers opportunities amid increased trading activity. He refuted any notion of the XRPL AMM transforming XRP into a stablecoin, emphasizing its role as an additional platform for trading XRP and XRPL tokens.
XRP Stability is Unnecessary with ODL
Regarding discussions on stability benefits for XRP value transfer, Mekras dismissed the notion, citing Ripple’s On-Demand Liquidity (ODL) that renders stability in seconds irrelevant. He argued against the necessity of a stable value for XRP, asserting that rapid transaction times within Ripple’s ODL system negate the significance of volatility in mere seconds.
Furthermore, referencing government documents labeling XRP and XLM as stablecoins, Mekras highlighted the misunderstanding prevalent in larger organizations and governments. He stressed the technical misinterpretations, often confusing XRP with Ripple and XRPL as the Ripple network.
