Fortifying Trust: CertiK Completes Security Audit for XLS-30d
Published: 2023-07-18 14:05:19

In the dynamic world of decentralized finance (DeFi), trust and security are paramount. With the ever-growing number of innovative projects entering the space, users need reassurance that their funds and personal information are protected. To address these concerns, a comprehensive security audit plays a vital role in establishing confidence and verifying the integrity of a project. 

We are excited to announce that a recent milestone has been reached in the development of [XLS-30d AMM spec](https://github.com/XRPLF/XRPL-Standards/discussions/78) for the XRP Ledger. In an effort to prioritize user safety and ensure the robustness of the platform, a rigorous security audit has been conducted by CertiK, a leading blockchain security firm. 

The finalized [security assessment](https://skynet.certik.com/projects/xrp-ledger) offers 31 findings of which none were deemed critical or major. The RippleX engineering team has since acknowledged the relevant findings and resolved all but two of the ‘minor’ findings. 

CertiK’s extensive DeFi auditing experience and their commitment to industry best practices makes them an ideal choice for assessing the security aspects of XLS-30d. Their team of seasoned security experts has thoroughly analyzed the codebase, identifying potential vulnerabilities and outlining rigorous security measures to safeguard the platform’s functionality. 

The audit primarily focused on the following facets:

- Reviewing the formulas used in the AMM operations
- Ensuring compliance with industry best practices and standards
- Verifying that the code behaves as intended and aligns with the XLS-30d specifications
- Conducting a meticulous line-by-line code review led by seasoned C++ engineers

Upon the completion of the audit the RippleX engineering team has closely collaborated with CertiK to address the relevant findings. For further information you can refer to the official report.

## How Does XLS-30d Work?

The XRPL [decentralized exchange (DeX)](https://xrpl.org/decentralized-exchange.html) currently provides liquidity exclusively by manual market making and order books. The XLS-30d proposal adds a non-custodial automated market maker (AMM) as a native feature to the XRPL DeX in a way that facilitates trading via liquidity pools, which token holders can contribute to as liquidity providers to earn a share of the trading fees.

The proposal operates a unique functionality that sees the AMM utilize a [continuous auction mechanism](https://dev.to/ripplexdev/xrpl-amm-network-available-for-testing-and-development-426i). This mechanism incentivizes arbitrageurs to bid for price discrepancies at optimum fees, thus allowing liquidity providers to keep more of the fees earned from a trading pool. 

## Not Your Typical AMM

While AMMs are typically executed via a smart contract, on the XRP Ledger the AMM operates on the protocol level meaning that it is a core component of the blockchain and does not require a smart contract to function. With the AMM being built as a protocol rather than an application, liquidity is aggregated at the protocol level and is shared with the order book DEX, ensuring better pricing and availability of tokenized assets on the XRPL. 

Additionally, there are considerable benefits such as openness and fairness. The rules cannot be altered and apply equally to all participants. Participation is open to anyone as a liquidity provider or trader, with governance and control of a liquidity pool determined by an objective rule set.

### Access the AMM Devnet

The AMM is currently live on a devnet and reference documentation can be viewed here.

AMM Development Network access information:

Websocket: wss://amm.devnet.rippletest.net:51233
JSON-RPC: https://amm.devnet.rippletest.net:51234

All developers are welcome to build integrations and test functionalities on this open source technology. There is an active [Discord](https://discord.com/invite/xrpl) community where developers can share ideas and ask questions to other XRPL community members.