Stellar protocol discussion on automated market makers (AMMs) focusing on asset authorization and revocation mechanisms. Two approaches debated: one mirroring existing offer revocation semantics, another requiring issuer opt-in for liquidity pool participation.
The Stellar Open Protocol meeting discussed CAP37 and CAP38 proposals for implementing automated market makers at the protocol level. The core technical debate centered on how asset authorization and revocation should work within AMMs. Two models were presented: Version 1 would automatically revoke pool shares when asset trust lines are revoked, mirroring current offer behavior but requiring significant database indexing changes. Version 2 would require issuers to opt-in to liquidity pool participation via a flag, simpler to implement but adding operational complexity. Participants discussed whether the opt-in flag should apply only to authorization-required assets or all assets, with concerns about backwards compatibility and edge cases. The team concluded that Version 1 makes more semantic sense but requires core team evaluation of implementation feasibility. Additional topics included handling claimable balances when pool shares cannot be returned to owners and potential future features for granular asset trading controls.