tl;dr
The launch of Ripple USD (RLUSD), pegged to the U.S. dollar, was anticipated this year for the XRP Ledger (XRPL) and Ethereum. Recent developments indicate RLUSD may only launch on Ethereum or on XRPL without initial functionality in the Automated Market Maker (AMM), limited to the DEX orderbook. Th...
The launch of Ripple USD (RLUSD), pegged to the U.S. dollar, is expected to be a major development in Ripple's ecosystem, potentially launching on Ethereum or XRPL with limitations. Ripple minted 99% of RLUSD tokens in 24 hours, facing potential limitations on XRPL due to the clawback feature. Amendments in development, including XLS-73 and XLS-77, aim to address limitations on XRPL, with uncertainty surrounding their implementation. Ripple CTO David Schwartz weighs in on the impact of XLS-77, expressing potential limitations of RLUSD's initial release. The XRP community voices objections over potential limitations of RLUSD on XRPL, expressing frustrations towards Ethereum and its creator, Vitalik Buterin. The launch of Ripple USD (RLUSD), pegged to the U.S. dollar, was anticipated this year for the XRP Ledger (XRPL) and Ethereum. Recent developments indicate RLUSD may only launch on Ethereum or on XRPL without initial functionality in the Automated Market Maker (AMM), limited to the DEX orderbook. This is due to the clawback feature, preventing RLUSD from being used in XRPL’s AMM. Amendments, such as XLS-73 and XLS-77, are in development to address this. Ripple CTO David Schwartz expressed that XLS-77 introduces less of a deep freeze than expected. Despite technical progress, the RLUSD launch may not initially meet all expectations, requiring patience from users. Additionally, the XRP community has voiced objections over potential limitations on XRPL, particularly as RLUSD is expected to operate fully on Ethereum. Set to be a major development in Ripple's ecosystem, the launch of Ripple USD (RLUSD), pegged to the U.S. dollar, was widely expected this year. Both XRP Ledger (XRPL) and Ethereum were originally planned as its launching platforms. However, recent news suggests potential changes, as RLUSD can only launch on Ethereum this year or, alternatively, on XRPL as well, but without initial functionality in the Automated Market Maker (AMM), restricted instead to the DEX orderbook. A key reason for this limitation comes from the clawback feature, which blocks the stablecoin from being utilized in XRPL’s AMM. There are amendments in development that could remedy this situation, notably XLS-73, which aims to improve how the AMM interacts with frozen assets, and XLS-77, designed to implement a more stringent freeze for trustlines, preventing the transfer of RLUSD by blacklisted accounts. With XRPL being a decentralized network, when these amendments will take effect remains unpredictable, especially with community fatigue being observed. Ripple CTO David Schwartz provided his perspective, explaining that XLS-77 introduces less of a deep freeze than some might expect. In cases where XLS-77 applies, instead of assets going into frozen accounts, they remain in unfrozen accounts with added restrictions, impacting payments that would have otherwise gone through. Yet, despite technical progress, the RLUSD launch may not meet all expectations right away. A stablecoin of high quality is, without question, essential for Ripple’s future, but the initial release may lack complete functionality, requiring some patience from users. Further intensifying the situation, the XRP community voiced strong objections over RLUSD’s potential limitations on XRPL, especially since it is expected to operate fully on Ethereum. This has not sat well with some, who hold deep-seated frustrations toward Ethereum and its creator, Vitalik Buterin.