A new post about Automated Market Maker on the Stellar Blockchain will be published on the Stellar Development Foundation’s blog. It’s a detailed post on how to enable AMMs in Stellar Protocol 18.
The new upgrade and the addition of AMMs to the Stellar blockchain won’t happen anytime soon. But SDF decided to discuss details about the new feature and extensively present its use cases in order to keep the community well informed. If the proposal gets into the final versions and receives the required votes, we can expect many more new innovations and projects on the Stellar blockchain.
New opportunities on Stellar Blockchain
Automated market makers are essential components for adding comprehensive financial services to a blockchain. They enable trading platforms to provide liquidity and create automatic DeFi services.
Stellar, like many other well-known blockchains, could take this route and offer its user base the possibility of automatic market cultivation.
Currently, Stellar supports many digital assets and is one of the leading blockchains in terms of issuing assets and enabling cross-border payments. However, this blockchain needs more liquidity to provide better services. AMMs can solve this by enabling new services.
There has always been a desire for cheaper, faster, and more usable cross-border payments on Stellar. This need has led to a technical proposal for adding AMMs to the blockchain. The proposal was published on June 25th and can be put to the vote soon.
The SDF blog post says nothing about the timing of the vote for / against the AMM proposal. But when and when the proposal wins the votes, AMM functionality becomes available to developers on Stellar. It will exist alongside SDEX as an alternative source of liquidity.
As mentioned above, AMMs add more liquidity to the Stellar blockchain and the products on it. According to the introduction post:
“AMMs on Stellar have the potential to provide easily accessible liquidity on a large scale, especially for new markets and markets currently overlooked by market makers. Asset issuers no longer have to rely on market makers to keep order books: they can simply create liquidity pools and enable individual users to provide liquidity through deposits. “
Voting isn’t the only step required to add AMMs to the Stellar blockchain. Many technical developments should be carried out to add the new functionality to this blockchain. According to the Post, the Stellar Core team will be working on the proposal and finalizing it in Stellar Core v18.0.0.
If you are interested in this project and want to be informed about everything, visit our Stellar News section