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[🧵] Later today (in a few hours), the “AMMClawback” amendment will go live on the XRP Ledger, and you'll see the RLUSD/XRP AMM-Pool (and many other pools) created shortly thereafter. I'm a rather cautious guy, so let me share some rather unpopular opinions. 😅👇 — THEORY — The math behind the XRPL AMM favors volatile assets and is not specialized on stablecoins in general. It's intended for "most" pool-pairs that will ever exist on the XRPL to allow for broad success with many different tokens on the AMM. For the RLUSD/XRP AMM pool, this means that it will be extremely difficult to offset impermanent loss (much more difficult than with two volatile assets moving in unison in price) — MY OPINION — The APR will also likely be very low compared to other AMM pools, as the liquidity deposited into this pool is expected to be very high, meaning that the accrued returns will need to be spread across many different LP token holders. We know this to be true when looking at the existing stablecoin-based AMM-pools created by GateHub and Bitstamp currently running on the XRPL. So far, there are also no additional incentives (airdrops) for farming the pool to get the RLUSD/XRP pool kickstarted. — TL;DR — NFA — I know, I know, so much theory, what is the TL;DR but not financial advice bottom line? 🔸 If you don't understand Impermanent Loss, don't deposit funds into the pool. 🔸 If you expect XRP to moonshot and not recover (USD price), don't deposit funds into this pool 🔸 If you don't know how to get started, but still want to deposit funds into the pool, at least start small—e.g. 3 RLUSD and 1 XRP—double-sided-deposit — ALL IN ALL — ➡️ There's no good reason to FOMO-deposit all your XRP into this pool as soon as the pool exists. Don't get me wrong, the RLUSD/XRP AMM pool is a great addition and will drastically increase the overall TVL and $-Volume on the XRP Ledger . . . . . . but there are also downsides for liquidity providers who want to contribute to the growth of the pool the way the XRPL AMM is set up right now. (XLS-30) 🫡 Stay safe out there. There's no shame in doing “nothing” when new features or pools are introduced.