Stellar launched an automated market maker (AMM) at the protocol level, operating alongside its existing order book-based matching engine. The upgrade enables liquidity pools for trading fees and makes it easier to list long-tail assets with limited liquidity.
Stellar completed a protocol upgrade Wednesday that deployed an automated market maker (AMM) at the protocol level, complementing its traditional order book-based matching engine. The AMM implementation, inspired by Ethereum's Uniswap v2, allows users to deposit liquidity into pools and earn trading fees while automatically adjusting price relationships based on trading volume. According to Stellar's head of ecosystem Justin Rice, the feature was a popular developer request and will improve market efficiency for arbitrageurs and market makers. The upgrade also simplifies adding new assets to the protocol, particularly long-tail or exotic assets that previously faced liquidity constraints.