![AMM on the XRP Ledger: What It Means for XRP Investors](http://media.assettype.com/analyticsinsight%2Fimport%2Fwp-content%2Fuploads%2F2024%2F01%2FAMM-on-the-XRP-Ledger-What-It-Means-for-XRP-Investors.jpg?w=480&auto=format%2Ccompress&fit=max)
As validators continue to support the XRP Ledger automated market maker (AMM) amendment, the door for the XRP Army to profit passively with their holdings increasingly opens.
Anodos Finance founder Panos Mekras recently highlighted the rising number of XRPL validators that support the XLS-30D AMM Amendment. At the time of disclosure, 20 validators had voted yes on the modification, resulting in a 57.14% consensus.
However, evidence from XRPL blockchain explorer XRPScan indicated that the consensus was currently 60% at press time. This is the result of 21 validators approving the modification.
Notably, this new result significantly improved from the 16 yes and 18 negative votes reported on December 7.
Significantly, the successful ratification of the XLS-30D AMM Amendment creates a unique possibility for XRP investors to make passive income from their assets.
The main feature of this amendment is the integration of automated market maker capability into the XRP Ledger, which connects it smoothly to the current decentralized exchange.
Fundamentally, it creates a liquidity staking pool for XRP holders. Individuals will be able to donate liquidity to the AMMs. They will receive a proportionate amount of earnings and share the accompanying exchange risk.
Notably, each AMM instance has a separate account to safeguard its assets, and liquidity providers get liquidity pool tokens in proportion to their deposits.
Furthermore, XRP liquidity providers can vote on the AMM's trading charge based on their proportion of LP assets.
Stedas conducted a community poll in November, and 75% of members showed a willingness to use AMM liquidity provider services to earn passive revenue.
Meanwhile, the execution of this smart contract capability is dependent on obtaining an 80% endorsement from XRPL validators.
Furthermore, there have been concerns about its possible downsides. It includes worries about increased market volatility and susceptibility to manipulation, such as front running. Concerns have also been raised about AMMs' potential contribution to system centralisation.
Significantly, the XLS-30D code base was thoroughly audited by the famous security firm CertiK. The security agency gave it an exceptional security rating of 95/100.
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