Ripple’s CTO Drops Trading Bot Update: How Will It Impact XRP?

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Written By Maya Cantina

Ripple’s Chief Technology Officer David Schwartz recently unveiled updates regarding his trading bot, sparking intrigue within the XRP community. The bot, developed by Schwartz, operates on an algorithm reminiscent of XRP Ledger’s AMM algorithm. Initially designed for trading on centralized exchanges, Schwartz disclosed that the bot has undergone testing, primarily focusing on Solana.


In a recent development, Schwartz disclosed the implementation of a new strategy for the bot, envisioning three distinct AMMs for Ethereum, Bitcoin and Solana. This adjustment, he explains, allows for a more aggressive approach, enabling the bot to take on additional risk while expanding trading opportunities. As per previous estimates, Schwartz expressed optimism about the bot’s profitability, estimating an annual return of approximately 11%.

Importantly, Schwartz clarified that AMMs are not exclusive to XRP, as they can be created with any two assets supported by XRP Ledger. However, he predicted that AMMs involving XRP will likely dominate, attributing this to the algorithm’s bias toward volatility harvesting, particularly advantageous in volatile markets.

Meanwhile, controversy surrounds the XRPL AMM, the foundation upon which Schwartz’s bot is built. RippleX, the developer arm of Ripple, has identified discrepancies in certain AMM pools, resulting in transaction execution issues.

As a precautionary measure, RippleX has advised against depositing new funds into these pools until the discrepancies are rectified. According to the report, the engineering team is working alongside community participants to address the issue, promising timely updates to the community.


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