Stellar Protocol 18 launched with AMM functionality built at the protocol level, enabling automated market makers that democratize liquidity provision. Two weeks post-launch, the network has 1,500+ liquidity pools, $13M+ in total value locked, and spreads on key pairs like ARS/USD have tightened to 1%, improving cross-border payment costs by 33%.
Justin Rice, Phil Meng, and Dima Gamiza discussed Stellar's Protocol 18 upgrade, which introduced automated market makers (AMMs) at the protocol level on November 3rd. Unlike other blockchains where AMMs are smart contracts, Stellar's protocol-level implementation enables path payments to intelligently route through both order books and AMM pools for optimal pricing. The ecosystem collaborated from the start, with SDF sharing API specs and creating a bleeding-edge testnet, allowing projects like Ultra Stellar to launch StellarX interfaces on day one. Early metrics show 1,700 unique liquidity providers, 1,600+ pools, and $13M+ in total value locked. Notably, spreads on Argentine peso pairs narrowed to 1%, cutting conversion costs by 33%. Future improvements under discussion include optimized bonding curves, single-sided liquidity provision, and tokenized LP positions.
