Share this article
Stellar Validators Vote In AMM Integration That Could Boost Liquidity
In addition to an order book-based token router, the protocol now boasts a parallel automated market maker.
Updated Apr 10, 2024, 3:10 a.m. Published Nov 3, 2021, 5:21 p.m.
Make us preferred on Google
In a protocol upgrade Wednesday morning, tokenized money transfer protocol Stellar has launched an automated market maker (AMM) that will operate alongside its order book-based router and matching engine.
The voted-in proposal could bring greater efficiency and utility by deploying a longtime staple of the decentralized finance (DeFi) world.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Stellar is a blockchain protocol designed to facilitate cross-border payments between different forms of tokenized money, such as digital dollars and tokenized gold. Until today, the protocol operated with an orderbook-style matching engine, connecting buyers and sellers of various tokens.
AMMs are a decentralized form of exchange pooling two assets, such as ETH and DAI, which automatically adjusts the price relationship between the assets based on trading volume. They are a particularly popular form of asset exchange in DeFi.
In an interview with CoinDesk, Stellar’s head of ecosystem, Justin Rice, said that the addition of an AMM at the protocol level was a popular ask among developers and users, and that the implementation takes cues from Ethereum-native AMMs such as Uniswap v2.
Users will now be able to deposit liquidity into pools for trading fees, and the implementation could prove to be a boon for market makers and arbitrageurs trading between prices on the order book and the AMM.
Additionally, Rice said that this integration will make adding new assets to the protocol easier, as AMMs allow long-tail or exotic assets to trade despite limited liquidity.
The AMM functionality went live at 11 a.m. Eastern time, or 15:00 UTC.
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Privacy-focused Miden, Korea Digital Asset agree to build crypto infrastructure for institutional adoption
The partnership focuses on privacy, compliance and standards for regulated digital-asset adoption in South Korea.
What to know:
- Miden has signed an MOU with Korea Digital Asset (KODA), the country’s largest institutional crypto custodian.
- The partnership targets privacy-preserving infrastructure for regulated digital finance.
- The move follows regulatory progress in South Korea, including expanded rules for corporate crypto accounts and other institutional use cases.
Top Stories
