Stellar (XLM), a veteran digital assets platform, has implemented a critical update that marks the beginning of a new chapter in the platform’s evolution in the liquidity ecosystem.
Stellar Development Foundation (SDF), a non-profit organization dedicated to the advancement of Stellar-based blockchain solutions, has released an official statement announcing that the blockchain has been upgraded to its Protocol 18 version.
Protocol 18 upgrade complete! This is a big one. A huge thanks to the Stellar ecosystem for your support, feedback, and cooperation throughout the Protocol 18 process! https://t.co/hnBiwJAfXW— Stellar (@StellarOrg) November 3, 2021
As a result, Stellar is the only Layer 1 platform that may enable such functionalities. Its supporters can now construct liquidity pools without the use of smart contracts or the payment of exorbitant gas prices.
Customers of Stellar can take advantage of the company’s products and interfaces, as well as inject the liquidity required for cross-asset conversion.
To maximize the benefits to both customers and liquidity providers, all trades launched against Stellar’s AMM-powered liquidity pools will be executed at the best rate available.
VP of Ecosystem at Stellar Development Foundation (SDF), Justin Rice, emphasizes the critical necessity of this feature for the entire ecosystem of Stellar-based decentralized apps (dApps) as follows:
The introduction of AMM functionality may prove to be a defining moment for Stellar. (…) We’re excited at the potential their products and services have to boost network liquidity, make liquidity provision more inclusive, and further Stellar’s ability to improve equitable access to the world’s financial infrastructure.
Stellar’s liquidity pools would initially retain a minuscule 0.3 percent fee from liquidity providers, according to the company. In order to conduct trials using DeFi-specific tools, the Stellar Development Foundation has narrowed its focus. A new smart contract type for this blockchain was introduced in July 2021, and it is currently in use.
Additionally, the activation of the Stellar-Polygon bridge on September 23, 2021, demonstrated Stellar‘s interest in distributed financial infrastructure.
