According to Panos Mekras, XRPL needs quality assets such as Stablecoins and RWA to correct stagnant AMM liquidity despite the growing pool count.
Notably, as of May 7, 2025, XRPL's automated market maker (AMM) ecosystem had rapidly increased in the number of liquidity pools to 19,782. However, XRP liquidity across these pools has been stagnant since early 2025, hovering around 13.39 million XRP.
The gap between creating a pool and actual capital inflows is XRPL community. Panos Mekras, co-founder of Anodos Finance, highlighted the X issue. While the number of tokens and pools has skyrocketed, meaningful growth in XRP-supported liquidity has not been realized.
There is an obvious problem. XRPL's AMMs are very stagnant, and although there have been no new XRPs added for months, the pool and number of valueless tokens continues to grow. The only solution is combined with higher quality assets (Stablecoins and RWAS (as soon as possible))… https://t.co/pjqlqvswub
-panos {x}🇬🇷 (@panosmek) May 7, 2025
Asset quality remains at the heart of the growth challenge
According to Mekras, the growing number of pools is driven primarily by tokens, which have limited utility. He observed that many newly issued tokens, although of little value, continue to draw fluidity from the ecosystem.
He argued that introducing high-quality assets is best, including stability from top publishers and real-world assets (RWAS). Additionally, Mekras highlighted the need for a platform that can enhance onboarding and user interaction with XRPL. In his view, both builders and users need to request better standards from new projects to prevent further fragmentation of liquidity.
AMM pool configuration raises usability concerns
One user of X asked Mekras about the pool that contains two issued tokens. rlusd It is paired with Memecoin or another Fiat Pegged Asset. This question focused on the accessibility of such pools and whether or not they provide meaningful utilities.
Mekras replied that its value depends on demand and liquidity. He warned that inactive pools can deflect resources from the best-performing pool.
This is good as long as there is sufficient demand and liquidity. Otherwise, you're just splitting the liquidity that could go to the top pool. A stable pool to a stable pool is great, but most people don't seem to like or trust them, so you need more top stable coins from the top issuer…
-panos {x}🇬🇷 (@panosmek) May 7, 2025
Despite acknowledging that a stable, stable pool could be beneficial, he pointed out that users' trust in GateHub and BitStamp's existing Stablecoins remained low.
Comparison with other chains
Other blockchain activities continue to grow in total value locked (TVL), but XRPL liquidity remains relatively unchanged. Mekura It's attracting attention That competing chain has already attracted billions on TVL and is now seeing new momentum.
In contrast, low fluidity in XRPL persists. He said that ecosystems should already be ranked in the top chain by fluidity, but there is no presence of the highest tier Stablecoin issuers.
Engineer Hussein Badakchani first raised attention to this growing concern, replied that while high quality assets are important, improving pricing structures to make liquidity providers better incentives could also be effective.
Proposal to raise AMM fee caps
Badakchani suggestion It will allow liquidity providers to vote for higher returns, including a proposal to raise the AMM rate cap from 1% to 2.5%. Another change involves replacing the existing single-fee model with a more granular, operation-specific structure that covers XRP and token deposits and drawers individually.
To support this, an improved liquidity provider (LP) voting mechanism was proposed, designed to accommodate multi-tier rate models.
The proposal also requires that black hole wallets be excluded from LP voting calculations to prevent inactive addresses from affecting fee adjustments. To ensure continuity, he recommended a backwards compatible migration strategy for existing pools.
