$bull Tokenomics
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Understanding AMM Liquidity on XRPL

 

TOTAL SUPPLY: 400M

AMM: Magnetic

BLACKHOLED LP's:

XRPSCAN | Magnetic

If you're coming from ecosystems like Solana, you might wonder why certain wallets on XRPL hold a significant percentage of a token’s supply. Today, we’ll dive into this, focusing on AMM (Automated Market Maker) wallets and how they function as an essential part of the XRPL ecosystem.

 

What is an AMM Wallet?

An AMM wallet isn't a single investor or a "whale" hoarding tokens. Instead, it's part of a decentralized liquidity pool, which:

  • Facilitates Trades: Holds a significant reserve of tokens to enable smooth swaps between different assets.
  • Reduces Volatility: By balancing trades, it minimizes sudden price swings.
  • Supports the Ecosystem: Ensures that tokens are accessible to anyone trading on the XRPL DEX (Decentralized Exchange).

 

Example: The 30% Supply Wallet

Top $bull Holder Wallets

This two marked wallets aren’t owned by an individual this are liquidity pools. If you scroll down the holder list you'll find more AMM Wallets between different trading pairs. Below are key details you can observe on XRPSCAN:

Example: rHFofSpDWmyBkzUxknfi1uEeAeTVjpYSrG. Main $BULL AMM Pool

AMM WALLET

 

  1. Master key: DISABLED
  2. Balance: Reflects the token reserves held by the AMM for trading purposes.
  3. Transactions: Shows swaps, liquidity additions, and removals from the pool.
  4. Trustlines: Verifies the wallet's role in facilitating trades via the XRPL AMM.

 

How to Read the Data on XRPSCAN

Follow these steps to understand the role of an AMM wallet:

  1. Visit the Wallet Details: View the Wallet on XRPSCAN
  2. Analyze the Transactions: Look for patterns showing consistent trading activity, which indicates liquidity provision.
  3. Check Token Balances: Large holdings indicate reserves to support trading pairs.

 

Solana vs. XRPL: The Key Difference

On Solana, large wallets are often associated with individual "whales" or custodial platforms. On XRPL, AMM wallets serve a decentralized function, making tokens more accessible and maintaining market stability.

Think of these wallets as community hubs rather than personal accounts.

 

Explore More

To learn more about XRPL AMMs and how they benefit token ecosystems, check out our resources:

 

If you have questions or need help exploring XRPL, feel free to reach out to our community!