Liquidity Pools & AMM on the XRP Ledger
Provide liquidity, earn trading fees, and power decentralized trading — all through AMM pools built natively into the XRPL protocol
How to Provide Liquidity on XRPL
Three steps to start earning from AMM pools
1
Connect Your Wallet
Start by connecting an XRPL wallet like Xumm. Your wallet gives you full custody of your assets — tokens are never held by XPMarket. You will need XRP and a second token to deposit into a pool.
2
Choose a Pool
Browse the top AMM pools on XPMarket to find a pair that matches your strategy. Check trading volume, total liquidity, and fee earnings to compare pools before committing your assets.
3
Add Liquidity
Deposit both assets into the pool in equal value. You receive LP tokens representing your share of the pool. As traders swap through the pool, you earn a proportional share of every trading fee.
Browse the Top AMM Pools
XPMarket tracks every AMM pool on the XRP Ledger. Compare liquidity depth, 24-hour volume, and fee returns to find the best opportunities — updated in real time.
Why Provide Liquidity on XRPL
Passive Fee Earnings
Every trade that flows through your pool generates a fee. As a liquidity provider, you earn a proportional share of those fees automatically — no staking, no lockups, no claiming.
Fully On-Chain
AMM pools on XRPL are built into the protocol itself. Every deposit, withdrawal, and trade is recorded on-chain with full transparency. No smart contract risk, no middlemen.
Protocol-Level Security
Unlike smart-contract-based AMMs on other chains, XRPL's AMM is a native ledger feature. It benefits from the same consensus mechanism and security model that has protected the XRP Ledger since 2012.
The Complete Guide to Liquidity Pools on XRPL
A liquidity pool is a reserve of two assets locked in a protocol that enables decentralized trading. Instead of matching buyers with sellers through a traditional order book, a liquidity pool uses a mathematical formula — called an automated market maker (AMM) — to calculate exchange rates and execute swaps instantly. Anyone who deposits assets into the pool becomes a liquidity provider and earns a share of the trading fees generated by every swap.
On the XRP Ledger, AMM pools are not built on top of the protocol through smart contracts — they are a native feature of the ledger itself. This is an important distinction. Smart-contract AMMs on networks like Ethereum or Solana inherit the risks of their contract code: bugs, exploits, and upgrade vulnerabilities. XRPL's AMM operates at the protocol level, validated by the same consensus mechanism that secures every XRP transaction. The result is a more predictable and secure foundation for decentralized liquidity.
Providing liquidity on XRPL starts with choosing a token pair. Each pool consists of two assets — for example, XRP and a community token. When you deposit into a pool, you contribute both assets in equal value and receive LP (liquidity provider) tokens in return. These LP tokens represent your proportional share of the pool. As traders swap tokens on the DEX, a small fee is charged on each trade and distributed to all liquidity providers based on their share. The more trading volume a pool generates, the more fees its providers earn.
Impermanent loss is the main risk to understand before providing liquidity. When the price ratio between the two assets in a pool changes significantly, the value of your position can diverge from what you would have earned simply holding both assets. The term is somewhat misleading — the loss only becomes permanent if you withdraw while the price ratio is still shifted. If prices return to their original ratio, the loss disappears. Trading fee earnings can also offset impermanent loss over time, especially in high-volume pools.
XPMarket makes it easy to evaluate pools before committing capital. The AMM pools dashboard shows real-time data on total liquidity, 24-hour trading volume, fee generation, and historical performance for every active pool on the XRP Ledger. Whether you are launching a community project through the meme coin creator or building a custom token, adding AMM liquidity is a critical step. You can deposit and withdraw liquidity directly through the interface, track your LP token value, and monitor your earnings — all without leaving the platform. Whether you are an experienced DeFi participant or exploring crypto liquidity pools for the first time, XRPL's native AMM gives you a transparent and efficient way to put your assets to work.
자주 묻는 질문
What is a liquidity pool?
A liquidity pool is a reserve of two assets held in a protocol that enables decentralized token swaps. Instead of matching individual buyers and sellers, the pool uses a formula to calculate exchange rates automatically. Anyone can deposit assets into a pool and earn a share of the trading fees generated by swaps.
What is an AMM?
AMM stands for automated market maker. It is the mechanism that powers liquidity pools by using a mathematical formula to set prices and execute trades. On the XRP Ledger, the AMM is built directly into the protocol rather than relying on smart contracts.
How do I earn fees from a liquidity pool?
When you deposit assets into an AMM pool, you receive LP tokens representing your share. Every time a trader swaps tokens through the pool, a small fee is charged. That fee is distributed proportionally to all liquidity providers based on their LP token holdings — no manual claiming required.
What is impermanent loss?
Impermanent loss occurs when the price ratio of the two assets in a pool changes after you deposit. Your position may be worth less than if you had simply held both assets separately. The loss is only realized when you withdraw. Trading fee earnings can offset impermanent loss, especially in pools with high volume.
Is providing liquidity on XRPL safe?
XRPL's AMM is a native protocol feature, not a smart contract. This eliminates the risk of contract bugs or exploits that affect smart-contract-based AMMs on other networks. However, you are still exposed to market risks like impermanent loss and token price fluctuations.
How do I choose which pool to provide liquidity to?
Look at trading volume, total liquidity, and fee generation on the XPMarket AMM dashboard. Pools with consistent daily volume tend to generate more reliable fee earnings. Also consider the tokens involved — pools with volatile assets carry higher impermanent loss risk but may generate higher fees.
Do I need XRP to get started?
Yes. Every XRPL wallet requires a 10 XRP base reserve to activate. You will also need a small amount of XRP for transaction fees, which are fractions of a penny. Make sure your wallet is funded before creating a token or adding liquidity.