Automated Market Maker Functionality is Live on Stellar

Protocol native AMM functionality launches on Stellar, introducing an entirely new cross-currency payment path

San Francisco — November 3, 2021 — Today at 15:00 UTC, Stellar validators voted to upgrade the network to Protocol 18, which adds Automated Market Maker (AMM) functionality to the Stellar protocol. This makes Stellar one of the earliest Layer 1 blockchains with a protocol-native feature for AMMs. Liquidity pools can be created on Stellar without requiring smart contracts — the most common AMM implementation to date — and without the high gas fees transactions require on other networks.

Users can now access products and interfaces created by ecosystem developers to deposit into liquidity pools, helping to create liquidity for cross-asset conversion. Cross-border payments leveraging AMMs will utilize liquidity pools if the rate is better than what is available through Stellar’s decentralized exchange. Trades executed against a liquidity pool will get the best available rate on Stellar, to the benefit of both those making cross-border payments and the liquidity providers. The liquidity pools retain a 0.3% fee on transactions that is distributed to liquidity providers.

The Stellar Development Foundation prioritized improving liquidity in our 2021 Roadmap. Stellar is optimized for cross-border payments and asset issuance, so market liquidity to enable quick and efficient asset conversation is fundamental to the network’s success. Enabling AMM functionality has the potential to help the network thrive and grow by making liquidity provision an accessible, simple, and inclusive process. It is one approach SDF has prioritized to democratize liquidity provision and make asset conversion more efficient.

SDF took a novel approach to this network upgrade, sharing technical documentation and access with developers early on. SDF development teams coded AMM functionality with input from the Stellar ecosystem and put together documentation and tools that developers could use to build their AMM products and interfaces at the same time. Ecosystem developers were able to start building user interfaces that became accessible at the same time the protocol upgrade was approved.

Justin Rice, VP of Ecosystem at SDF, said, “The introduction of AMM functionality may prove to be a defining moment for Stellar.  For the first time, a range of independent participants from across the ecosystem worked hand-in-hand with protocol and API developers to implement a new feature in advance of a network upgrade.  We're excited at the potential their products and services have to boost network liquidity, make liquidity provision more inclusive, and further Stellar's ability to improve equitable access to the world's financial infrastructure.” 

Select interfaces built by ecosystem developers are already available and in use.

‍About Stellar‍

Stellar is a decentralized, fast, scalable, and uniquely sustainable network for financial products and services. It is both a cross-currency transaction system and a platform for digital asset issuance, designed to connect the world’s financial infrastructure. Financial institutions worldwide issue assets and settle payments on the Stellar network, which has grown to over 5 million accounts.‍‍

About Stellar Development Foundation‍

The Stellar Development Foundation (SDF) is a non-profit organization that supports the development and growth of Stellar, an open-source network that connects the world’s financial infrastructure. Founded in 2014, the Foundation helps maintain Stellar’s codebase, supports the technical and business communities building on the network, and serves as a voice to regulators and institutions. The Foundation seeks to create equitable access to the global financial system, using the Stellar network to unlock the world’s economic potential through blockchain technology.

协议原生 AMM 功能在 Stellar 上推出，引入全新的跨货币支付路径

旧金山 — 2021 年 11 月 3 日 —世界标准时间今天 15:00，Stellar 验证者投票决定将网络升级到协议 18，该协议将自动做市商 (AMM) 功能添加到 Stellar 协议中。这使得 Stellar 成为最早的具有 AMM 协议原生功能的第 1 层区块链之一。可以在 Stellar 上创建流动资金池，而无需智能合约（迄今为止最常见的 AMM 实施），也无需在其他网络上进行交易所需的高 gas 费用。

用户现在可以访问生态系统开发者创建的产品和接口，将其存入流动资金池，帮助为跨资产转换创造流动性。如果汇率优于通过 Stellar 去中心化交易所获得的汇率，则利用 AMM 的跨境支付将利用流动资金池。针对流动性池执行的交易将在 Stellar 上获得最佳可用利率，这对进行跨境支付的人和流动性提供者都有好处。流动性池对分配给流动性提供者的交易保留 0.3% 的费用。

恒星发展基金会在我们的2021 年路线图中优先考虑提高流动性。Stellar 针对跨境支付和资产发行进行了优化，因此实现快速高效资产对话的市场流动性是网络成功的基础。启用 AMM 功能有可能通过使流动性提供成为一个可访问、简单和包容的过程来帮助网络蓬勃发展和发展。这是 SDF 优先考虑使流动性提供民主化并提高资产转换效率的一种方法。

SDF 采用了一种新颖的方法来进行网络升级，早期与开发人员共享技术文档和访问权限。SDF 开发团队使用来自 Stellar 生态系统的输入对 AMM 功能进行编码，并将开发人员可以用来同时构建其 AMM 产品和接口的文档和工具放在一起。生态系统开发人员能够在协议升级获得批准的同时开始构建可访问的用户界面。

SDF 生态系统副总裁 Justin Rice 说：“AMM 功能的引入可能被证明是 Stellar 的决定性时刻。来自整个生态系统的一系列独立参与者首次与协议和 API 开发人员携手合作，在网络升级之前实施一项新功能。我们对他们的产品和服务有可能提高网络流动性、使流动性提供更具包容性以及进一步提高 Stellar 改善全球金融基础设施公平获取的能力感到兴奋。” 

生态系统开发人员构建的精选界面已经可用并正在使用中。

‍ 关于恒星

Stellar 是一个去中心化、快速、可扩展且独特可持续的金融产品和服务网络。它既是一个跨币种交易系统，也是一个数字资产发行平台，旨在连接世界金融基础设施。全球金融机构在 Stellar 网络上发行资产和结算支付，该网络已发展到超过 500 万个账户

关于恒星发展基金会

Stellar Development Foundation (SDF) 是一个非营利组织，支持 Stellar 的发展和壮大，这是一个连接世界金融基础设施的开源网络。该基金会成立于 2014 年，帮助维护 Stellar 的代码库，支持在网络上构建的技术和商业社区，并充当监管机构和机构的代言人。该基金会寻求创造对全球金融系统的公平准入，利用 Stellar 网络通过区块链技术释放世界经济潜力。