Stellar Protocol 18 proposal to add automated market makers (AMMs) was approved for implementation on June 25, 2021. AMMs will provide an alternative liquidity source alongside the existing order book exchange, enabling easier participation in market making and improving cross-asset payment efficiency.
The Stellar Development Foundation announced that CAP-38, a technical proposal to enable automated market makers (AMMs) in Stellar Protocol 18, was officially deemed ready for implementation. AMMs will allow anyone to provide liquidity by depositing into pools, with prices adjusted programmatically rather than through manual order management. The proposal uses a simple constant product formula similar to Uniswap, with a fixed 0.3% fee distributed to liquidity providers. Path payments will execute against whichever source (order books or AMM pools) provides the best rate. The Stellar Core team will spend the next months implementing the spec, testing it, and releasing Stellar Core v18.0.0 in fall 2021, followed by testnet deployment and validator voting on the public network upgrade.
