Stellar, a blockchain-based payment network is making its mark in the global payments sector, competing with remittance giants like MoneyGram and Western Union. It also boasts of a decentralized exchange for trading crypto and other assets. Improving liquidity remains an essential part of the firm.
Now, to do so Stellar has launched different initiatives to align with their 2021 growth plan. On 25 June, 2021, a technical proposal to enable automated market makers (AMMs) in Stellar Protocol 18 was officially deemed ready for implementation. This was a significant initiative towards improving liquidity. It was deemed to be released on 3 November.
As per the latest development, the firm offered some insights before to the approaching D-day, i.e. the execution of the automated market maker (AMM).
AMMs on @StellarOrg are going live in just a few days.
Here's a sneak peak of what we are building. 👀
— StellarX (@stellarxhq) October 30, 2021
The official blog noted,
“In preparation for the upgrade, the Stellar Development Foundation (SDF) and the greater Stellar ecosystem collaborated to accelerate development so that the AMM functionality will be immediately available to end users if and when validators vote to accept the Protocol 18 upgrade on November 3rd.”
Nick Gilbert at SDF, along with other participants Settle Network, Ultra Stellar, and Stellarport.io recently collaborated in a YouTube video to further highlight this development. They said collaboration focused on the importance of liquidity on Stellar and features built to leverage AMM functionality.
Now the markets should be as liquid as possible to aid Stellar’s potential of fast, cheap, and seamless payments. Here’s how AMMs fit in the picture. It democratizes access by making liquidity provision accessible, simple, and inclusive.
Gleb Pitsevich from Ultra Stellar opined,
“I expect more people to start using swap functionality versus trading from the DEX. It’s a new concept combining the DEX and AMMs on a single network. I don’t think this has been done before.”
In addition to this, AMMs open greater business opportunities for financial services and fintech companies as well. The same was discussed in another interview with the aforementioned hosts. One of the speakers, Jack Saracco asserted:
“The creation of this protocol is a very key factor for us since we are constantly involved in the order books, in the DEX, providing liquidity for orders and spreads. We’re constantly monitoring our trades and the availability of being able to trade in a pool. AMMs could lower the spread drastically, and I see how the community is going to really benefit from having AMMs interact with stablecoins and the Stellar ecosystem itself.”
Having said that, the said development was just the beginning of the Stellar ecosystem. Different upgrades/milestones were yet to see the surface according to the 2021 roadmap.
Even in the past, Stellar has taken steps to grow as a platform, from different partnerships such as the creation of the Europe-Africa remittance corridors, to its native token Stellar Lumens (XLM) growth since its inception.