The key idea of the video is that automated market makers (AMMs) and the

XLS-30D on the XRP Ledger provide opportunities for individuals and

institutions to earn yields on assets through liquidity pools, offering a potentially
profitable option with less risk than holding the asset itself.

 00:00 💥 Learn about AMMs and XLS-30D on the XRP Ledger, understand their meaning,
and explore the potential for making money from them as David Schwartz discusses the
implementation of automated market makers and the opportunity to earn yields on assets
through liquidity pools.
o Learn about AMMs and XLS-30D on the XRP Ledger, understand their meaning,
and explore the potential for making money from them.
o David Schwartz commented on the amms or XLS 30d thread, discussing
automated market makers and proposing their implementation on the XRP ledger.
o An AMM is a decentralized exchange that operates differently from traditional
order books, using liquidity pools to facilitate trades, and the XLS-30d proposal
offers a new way to potentially earn yields on assets.

 02:33 💥 When assets are added to a liquidity pool, individuals receive tokens representing
their share of the pool, allowing them to earn fees and vote on changes to the AMM
parameters.
o When assets are added to a liquidity pool, individuals receive tokens representing
their share of the pool, with the example given of Alice and Bob creating an
AMM on the XRP Ledger and receiving liquidity pool tokens based on the assets
they deposit.
o Alice and Bob own different proportions of a liquidity pool, and by redeeming
their LP tokens, they can receive a share of the total liquidity and earn fees, while
also having the ability to vote on changes to the parameters of the AMM.

 04:23 💥 XLS-30d allows users to interact with the amm and bid for privileges, while the
constant product formula ensures accurate pricing; voting mechanism and auction allow
LP token holders to earn higher yields and exploit arbitrage opportunities.
o Different transaction types, including amm deposit, amm withdraw, amm trade,
and amm bid, allow users to interact with the amm and bid for special privileges,
while the assets within XLS 30d are priced using the constant product formula to
ensure accurate pricing at all times.
o XLS-30d proposes a voting mechanism for setting trading fees, allowing liquidity
providers to have more say based on the number of LP tokens they hold, and the
continuous auction mechanism allows LP token holders to bid for a 24-hour time
slot with extra benefits for their trades.
o By winning the bid in the auction and reducing trading fees, one can earn a higher
yield and take advantage of arbitrage opportunities.
 07:21 💥 Institutions can earn fees and generate revenue by becoming liquidity providers
and using AMMs, as demonstrated by Project Mariana involving major international
banks.
o Institutions can benefit from AMMs by becoming liquidity providers and using
auctions to lower fees and control the operations within their own AMMs, as
demonstrated by Project Mariana involving the Bank of International Settlements,
the Monetary Authority of Singapore, and the Central Bank of Switzerland.
o Institutions can earn fees by delivering assets into a liquidity pool and
participating in AMMs, generating revenue instead of having assets lying
dormant.

 08:44 💥 A community-based AMM allows members to earn a yield by providing

liquidity, benefiting institutions, diversifying the market, and achieving interoperability,
with the yield of XLS 30d AMMs being difficult to calculate.
o A community-based AMM could be created where members provide liquidity and
earn a yield, which is more favorable than being a random person on the internet,
and the speaker is interested in discussing this further.
o Institutions can provide liquidity, hedge their exposure, establish their own
tokens, and achieve interoperability by using AMMs, which benefits the market
and allows for diversification.
o There is no way to calculate the yield of the XLS 30d amms due to various factors
such as liquidity, trading fees, and auction mechanics.
o David Schwartz provided an answer to a question, which the speaker found cool
and will display on the screen.

 12:26 💥 The AMM structure is secure and guarantees that you will receive an equal or
greater value when contributing to the pool, making it a potentially profitable option with
less risk than holding the asset itself.
o David Schwartz explains that the AMM structure may be the most secure and
there may be no downside, as you are guaranteed to redeem your LP tokens for an
amount of assets equal to or greater than what you contributed.
o The algorithm of the AMM ensures that when contributing to the pool, you will
receive an equal or greater value in return, allowing for the possibility of earning
money from it.
o Impermanent loss in staking LP coins is less than the loss from holding the asset,
making it an attractive option.

 15:06 💥 XLS 30d helps mitigate impermanent loss for liquidity providers, making it
fairer, and collaboration with knowledgeable individuals on Twitter can provide more
insights.
o The features included in XLS 30d seem to effectively mitigate the impermanent
loss derived from Arbitrage Bots, making it more fair for liquidity providers.
o Reach out to knowledgeable individuals on Twitter, such as Molly Elmore,
Patrick Riley, Zach Rector, and xrpp, to collaborate and find a conclusive answer
 regarding XLS 30d, as there are many smart people who can contribute their
insights.
o Being a liquidity provider by linking assets to liquidity pools, such as XRP in
poly sign custody, allows for secure asset protection and contribution to cash
flow, even while assets are in cold storage.

 17:56 💥 Book a one-on-one call with me to discuss thought processors and subscribe to
my channel for daily videos and expert interviews, as well as access to my upcoming
renovated Discord community.

The implementation of Central Bank Digital Currencies (CBDCs) raises

concerns about government surveillance, control, and potential limitations on
personal freedom and financial transactions.

 00:00 📱 CBDCs are programmable currencies issued by central banks that could limit
people's food choices, while stable coins are privately issued and tied to stable assets, and
there are two types of CBDCs being tested by various countries.
o Central Bank digital currencies are a new form of programmable currency that
could potentially restrict individuals from purchasing their preferred food.
o CBDCs are digital versions of everyday money issued by central banks, while
stable coins are privately issued and pegged to stable assets, and although many
countries are testing the feasibility of CBDCs, it's important to note that there are
two types of CBDCs.

 02:19 💰 Wholesale and retail CBDCs are being developed, with the Bank of England
facilitating trillion-dollar payments, but the practical implementation is still uncertain.
o There are two types of CBDCs: retail CBDCs for person-to-person payments and
wholesale CBDCs for bank-to-bank transfers, with the Bank of England making
payments up to a trillion dollars.
o Every day, a significant amount of money is being moved around through
wholesale CBDCs on a blockchain, with different volumes and values for retail
CBDCs, but the question remains on how this will be implemented in real life.

 04:21 💰 Cash is still available, but digital payments are preferred in some countries, and
wholesale CBDCs are unlikely to be accessible to the public due to extensive regulations.
o Cash will always be available as long as people want it, but in some countries like
Sweden, digital payments and cards are preferred over cash due to consumer
choices and the benefits they offer, as money itself generates more money in
certain industries.
 o Wholesale CBDCs are unlikely to be accessible to the public due to the immense
regulations required, including the need for a global regulation that seems
unreasonable given the lack of agreement between countries.

 06:05 🔍 Wholesale and retail CBDCs are expected to be implemented by 2025, but
concerns arise regarding the use of surveillance technologies and the traceability of cash.
o Fingerprints on cash can be used to trace its origin, allowing for the identification
of nefarious activities.
o Wholesale CBDCs are expected to be implemented by the end of 2025, followed
by retail CBDCs, and the use of surveillance technologies in CBDCs is a concern.

 07:43 💡 Programmable money can have both positive and negative implications, such as
automating tax payments but also potentially excluding certain individuals or limiting
spending based on government agendas.

 08:55 🔍 CBDCs could enable government surveillance and control over individuals'
actions and payments, as seen in China's social credit system, raising concerns about
personal freedom and financial limitations.
o CBDCs are still in development, but the worry is that they enable government
surveillance and control over individuals' actions and payments, as exemplified by
China's social credit system.
o The speaker expresses concern about the potential control and limitations on
personal choices that could arise from a centralized entity, such as a central bank
digital currency, and finds relief in information shared by Molly Elmore.
o China does not have a centralized social credit score system tied to money,
although there are private companies that do scoring, similar to Facebook.
o Government has never built a successful tech product that citizens use, and while
the financial side may not be directly related, the ability to surveil transactions can
be used to limit someone's financial pursuits without involving banks, as
evidenced by past instances of banks being interfered with due to political
agendas.

 12:39 🚨 The Canadian government's financial provisions under the emergencies act are
worrisome as banks freeze protester accounts and issue dire warnings, while CBDCs are
inevitable and individuals can choose to adapt or invest for potential wealth
opportunities.
o The financial provisions of the emergencies act in Canada are concerning as
banks have begun freezing accounts of protesters and issuing warnings of dire
consequences.
o CBDCs are inevitable and individuals have the choice to either passively adapt to
the changing financial system or actively invest in the technologies driving this
change for potential wealth opportunities.

 14:05 📈 CBDCs present a great opportunity for experienced individuals, as they will vary
in models and approaches across countries and may become more expensive due to the
use of different technologies.
 o There is a great opportunity for those who have experience and credibility in the
space of CBDCs, as there are fewer technologies that have emerged as viable
options.
o CBDCs will have different models and approaches in each country, and they will
be built on top of various technologies, potentially increasing in price over time.

The key idea of the video is that XRP has the potential to become a dominant
digital asset backed by various currencies, commodities, and value forms,
potentially stabilizing the financial system and replacing the current world
reserve currency.

 00:00 🔍 XRP could be backed by real-world assets like gold or energy, as well as other
currencies, to provide liquidity and global scalability, but it doesn't fit into any existing
crypto asset category and would require a new categorization called asset-backed crypto
assets.
o The speaker discusses the gold-backed crypto debate and the difference between
backing and pegging.
o XRP could be backed by various real-world assets such as energy or gold, as well
as other currencies like stable coins or CBDCs, in order to provide liquidity and
enable global scalability.
o The IMF has defined different types of crypto assets, including security tokens,
utility tokens, unbacked crypto assets (such as Bitcoin and XRP), stable coins,
and CBDCs, but XRP doesn't fit into any category and would require a new
categorization called asset-backed crypto assets.

 02:51 🔒 XRP can be backed by gold and other physical assets through tokenization on the
XRP Ledger, making it necessary to back digital assets.
o XRP can be indirectly backed by gold and other physical assets by tokenizing the
rights associated with owning the assets and settling them on the XRP Ledger,
which is believed to be the future of digital representation of physical assets.
o Tokenized stocks, bonds, and commodities will be available on the XRP Ledger
and other ledgers, making it necessary to back digital assets.
 05:26 💰 The US dollar's value being determined by the government is causing financial
instability, but backing a cryptocurrency with a commodity could stabilize the system and
potentially replace the current world reserve currency.
o Inflation is high, the cost of living is increasing, and people can no longer afford
their lifestyle due to the US dollar's value being determined by the government,
but backing a cryptocurrency with a commodity would stabilize the system and
prevent the current financial downward spiral.
o The US dollar is currently the world reserve currency, but there is a possibility of
a new system involving crypto assets and commodity backing to replace it, known
as de-dollarization.
o XRP is unique because it is not just a technology or token, but a true currency
with the potential to become a world reserve currency, unlike many other
cryptocurrencies.

 08:11 🔥 XRP will be backed by all currencies, commodities, and value forms, becoming
an SDR equivalent and potentially making it the dominant digital asset.
o XRP will be backed by every currency, commodity, and form of value, making it
equivalent to an SDR and increasing its value on the ledger.
o XRP is compared to the IMF and the Bank of International Settlements, and with
central banks buying more gold than ever and meeting with Ripple, it suggests
that XRP and gold will be at the top, making XRP the king SDR.

 10:18 🔑 XRP cannot become an SDR due to private ownership and forgotten wallets, but
reprogramming the escrow account could incentivize its use as a King SDR token,
potentially serving as a global liquidity provider and national currency within the IMF's
basket.
o XRP cannot become an SDR because it cannot be owned by any private
individual, and the presence of trace amounts of XRP in forgotten wallets owned
by individuals prevents it from being considered as an SDR.
o The possibility of reprogramming the escrow account of XRP to create a different
token, potentially becoming the chosen King SDR by the IMF, could incentivize
people to offer up their XRP for reprogramming into SDR XRP.
o XRP could potentially serve as a liquidity provider for global transactions and be
adopted as a national currency within the IMF's basket, functioning as both a
payment rail and a backed reserve currency, similar to the US Dollar.

 13:40 📈 XRP's low price is due to its predominant use in the marketplace, but as it
becomes a store of value, a virtuous cycle is created, establishing equilibrium, and the
debate over its status as a reserve currency is unnecessary as Ripple treats it as such.
o The price of XRP is low because it is being used predominantly in the
marketplace, but as it starts to be used as a store of value, a virtuous cycle is
created that establishes equilibrium.
o The debate over whether XRP can be considered a reserve currency is
unnecessary as Ripple treats it as such and their distribution and return of XRP
 from the escrow account suggests they identify it as a reserve currency, despite
arguments that it lacks official recognition.

 15:58 🔍 XRP may be backed by gold, as institutions show interest, and it's crucial to
safeguard our assets and align with assets for the new financial system, while the speaker
urges viewers to join a community of researchers for support.
o XRP can potentially be backed by gold, as there are indications that institutions
are interested in it, and it is important to protect our assets and position ourselves
in assets that will be used in the new financial system.
o The speaker discusses the upcoming technology of Central Bank digital
currencies and encourages viewers to join a community of like-minded
researchers to support the creation of similar videos.

 18:00 🔍 There is a video with something for everyone, so go watch it because it's good.