ripple in ripple The ecosystem caught attention this week Ripple US Dollar (RLUSD) Temporarily breaking its 1:1 peg to the US dollar. The stablecoin, designed to maintain a stable value, saw an unexpected rally, briefly trading at $1.04 — a 4% increase that raised eyebrows across the XRP community.

This event did not go unnoticed, even if it was short-lived. CTO of Ripple David SchwartzHe explained that this is due to the dynamics of the XRP/RLUSD market. He said that this unusual event may have happened due to the lean market structure, where there was a sudden increase XRP price Could impact RLUSD ratings.

RLUSD, which launched in December 2024, is Ripple's stablecoin initiative, which is backed 1:1 by held reserves. It runs on the XRP Ledger and Ethereum, and is designed to provide liquidity and support to Ripple's financial ecosystem.

But the fact that it is linked to XRP movements shows how difficult it is for a stablecoin to behave in volatile environments.

solution?

Meanwhile, the XRP Ledger community is preparing to vote on the creation of an Automated Market Maker (AMM) pool for XRP/RLUSD. AMMs rely on liquidity pools to make decentralized trading possible, so they can be really important in dealing with such issues.

AMMs use what is called an “algorithmic pricing model” to keep liquidity constant, so they can prevent prices from rising and falling too quickly.

But it's not a quick fix. The vote is scheduled to take place two weeks from now, so the market will have to get by without this mechanism for the time being. But the proposed AMM pool is seen as a step towards improving the stablecoin's performance when things change quickly.