🔗 How Trustlines Work

A trustline is a bilateral agreement between two XRPL accounts. The receiving account declares: "I trust this issuer to hold up to X amount of this currency." Until a trustline is established, you literally cannot receive a token from an issuer.

• Opt-in model — No one can spam your account with unwanted tokens
• Issuer controls — Issuers can freeze individual trustlines or execute a global freeze
• DefaultRipple — Enables tokens to flow between holders without routing through the issuer
• Transfer fees — Issuers can set a percentage fee on all transfers of their token
• Each trustline requires a 0.2 XRP reserve deposit

📈 How the DEX Works

• OfferCreate — Place a limit order to buy/sell any token pair
• OfferCancel — Cancel an open order
• Auto-bridging — The DEX can route through XRP to find the best price across markets
• Partial fills — Orders can fill partially, like a traditional exchange
• Anyone can trade any issued token against any other — including XRP

💲 AMM Features

• AMMCreate — Create a liquidity pool for any token pair
• AMMDeposit — Add liquidity and receive LP tokens
• AMMWithdraw — Remove liquidity
• Constant-product formula — Algorithmic pricing (x × y = k)
• LP token holders earn trading fees passively
• Payments can auto-route through AMM pools for best pricing
• AMM and DEX orderbooks coexist — the system picks the better price

🔐 Multi-Sig Architecture

• SignerListSet — Define which keys can sign and their weights
• Quorum — Set the minimum weight required to approve a transaction
• Flexible policies — 2-of-3 for transfers, 3-of-3 for config changes, 1-of-3 for emergencies
• DisableMaster — Remove the master key entirely so only multi-sig works
• This prevents any single person from unilaterally moving funds — by protocol, not by policy

🎨 NFT Capabilities

• NFTokenMint — Create NFTs with metadata, transfer fees, and burn authority
• Taxon grouping — Organize NFTs into collections (OPTKAS uses taxon 100 for attestations)
• On-ledger trading — NFTs can be sold on the native DEX marketplace
• Used for proof-of-reserves, attestation certificates, access control, and more

🔎 What You Can See on Any Account

• XRP Balance — How much native XRP the account holds
• Trustlines — Every token the account has opted into, with balances
• Transaction History — Every transaction ever sent or received
• Account Flags — RequireDestTag, DefaultRipple, GlobalFreeze, etc.
• Signer List — Multi-sig configuration (who can sign and their weights)
• NFTs — All NFTs minted by or held by the account
• Escrows — Active escrow locks (amounts, conditions, dates)
• DEX Offers — Open orders on the orderbook

🔍 Transaction Anatomy

• Hash — Unique identifier (e.g., A1B2C3...)
• Type — Payment, OfferCreate, EscrowCreate, NFTokenMint, etc.
• Account — Who initiated the transaction
• Destination — Who received (for payments)
• Amount — XRP or IOU details (currency + issuer)
• Fee — XRP burned for this transaction
• Ledger Index — Which ledger version included this transaction
• Memos — Optional attached data (OPTKAS uses this for document hashes)
• Result — tesSUCCESS = confirmed, anything else = failed

💰 XRPL Reserve System

The XRPL requires every account to hold a minimum XRP balance. This prevents spam (millions of empty accounts bloating the ledger).

• Base reserve: 1 XRP — just to have an account
• Owner reserve: 0.2 XRP per object (trustline, escrow, offer, NFT, signer entry)
• Example: An account with 5 trustlines and 3 escrows needs: 1 + (8 × 0.2) = 2.6 XRP minimum
• Reserve amounts are set by validator vote and can change over time (they've decreased historically)

🛠 Key Amendments

• AMM (XLS-30) — Enabled native automated market makers (2024)
• NFTokens (XLS-20) — Enabled native NFTs (2022)
• Clawback — Allows issuers to reclaim tokens (compliance feature)
• Checks — Deferred payment instruments
• DepositPreauth — Whitelist-based deposit control
• Hooks — Smart contract-like logic on XRPL (under development)

Amendments require at least 80% validator support for two continuous weeks before activating. This prevents hasty or contentious changes.

🔒 Network Architecture

• The XRPL mainnet runs approximately 150+ validators globally
• The default UNL (published by the XRPL Foundation) contains ~35 trusted validators
• Validators include: universities, exchanges, financial institutions, and independent operators
• Ripple operates ~6 of the 35+ default UNL validators (minority — no veto power)
• Anyone can run a validator. Not everyone gets added to the default UNL.

🔌 Cross-Currency Payments

The XRPL can automatically find the cheapest path to execute a payment across multiple currencies:

• You want to send USD → recipient wants EUR
• XRPL pathfinding checks: USD→EUR direct? USD→XRP→EUR? USD→GBP→EUR?
• It picks the path with the best exchange rate, possibly routing through AMM pools and DEX orderbooks simultaneously
• All happens atomically — either the full payment succeeds or nothing moves

🔗 Key SEP Standards Used by OPTKAS

• SEP-10 (Web Authentication) — Cryptographic login. Proves you own a Stellar account without sharing keys.
• SEP-24 (Hosted Deposit/Withdrawal) — The fiat on/off ramp. Users deposit USD to receive OPTKAS-USD tokens, or redeem tokens for USD. KYC/AML is integrated.
• SEP-31 (Cross-Border Payments) — Direct fiat-to-fiat via Stellar, with the network handling the conversion.

🔒 Compliance-Grade Token Controls

The Stellar OPTKAS-USD asset is issued with three critical flags:

• AUTH_REQUIRED — Every holder must be explicitly approved by the issuer before they can hold the token. This enables KYC-gated access.
• AUTH_REVOCABLE — The issuer can revoke a holder's authorization at any time. This is the "freeze" equivalent on Stellar.
• CLAWBACK — The issuer can reclaim tokens from a holder's account. XRPL doesn't have this — it's Stellar-only. Critical for regulatory compliance scenarios.

🔌 How the Two Chains Work Together

• Issuance — Tokens are minted on XRPL (primary) and Stellar (mirror) simultaneously
• Attestation — Document hashes are published to BOTH chains via XRPL memos and Stellar manage_data
• Proof pairs — Every significant event produces a hash on XRPL and a matching hash on Stellar — creating dual-chain proof
• Settlement — XRPL handles atomic DvP via escrow; Stellar provides the fiat bridge for on/off ramping
• Default scenario — XRPL trustlines are frozen AND Stellar authorizations are revoked simultaneously

🎯 The Big Picture

You’ve learned about the XRPL, trustlines, escrow, AMM pools, and 28 engines. Now we’ll walk through the complete journey of how a real-world asset — a building, a vault of gems, or a bond — becomes a tradeable digital token with its own liquidity pool.

Think of this as the recipe book. Modules 1–8 taught you what the ingredients are. Module 9 shows you how to cook the meal.

🎫 The Simple Version

A token is a digital representation of something real. It lives on the blockchain and can be sent, received, and traded — just like sending an email, but for value.

📑 OPTKAS Token Family

🔓 Before You Can Receive a Token…

On the XRPL, nobody can send you a token you haven’t agreed to receive. This is a security feature called a trustline.

• How: Submit a TrustSet transaction naming the token and issuer
• Cost: Only 0.2 XRP reserve deposit (refundable if you remove the trustline later)
• Result: Your wallet can now hold that token

💰 How Tokens Are Created

Minting is the moment a token comes into existence. Only the Issuer Account (Account #1) can do this.

🏠 TERRAVL — Real Estate Token

Let’s walk through a concrete example. You have a commercial building worth $2,000,000.

💎 GEMVLT — Gem Vault Token

Now the same process with precious stones — a collection of certified emeralds, sapphires, and diamonds worth $5,000,000.

💧 What Is a Liquidity Pool?

A liquidity pool is a pot of two tokens sitting on the blockchain, ready for anyone to trade against. Instead of finding a buyer or seller, you trade directly with the pool.

🛠 How We Create It

Creating a pool happens in one transaction called AMMCreate:

📊 The Math Behind the Pool

Every pool follows one simple rule:

When someone buys TERRAVL from the pool:

• They send XRP into the pool → XRP count goes up
• They receive TERRAVL out of the pool → TERRAVL count goes down
• The constant must stay the same → so the price of TERRAVL goes up

🎫 LP Tokens = Your Pool Receipt

When you deposit tokens into a pool, you get LP (Liquidity Provider) tokens back. Think of them as a coat check ticket:

• 🏪 You hand over your coat (TERRAVL + XRP) to the coat check
• 🎟 They give you a ticket (LP token)
• 💰 While your coat is “checked”, every trade through the pool adds a small “tip” to your coat pocket
• 🏪 When you return your ticket, you get your coat back plus the tips

📈 How LP Providers Earn Fees

Every time someone swaps tokens through your pool, they pay a small fee (typically 0.5%). That fee goes directly into the pool, making your LP tokens worth more.

ⓘ Simplified example. Actual returns depend on trade volume, pool size, and fee rates.

🚀 The Trading Experience

Once the pool exists, anyone on the XRPL can trade. They don’t need permission from OPTKAS. They don’t need to wait for a buyer or seller. The pool is always ready.

🔨 Smart Routing: AMM + DEX Together

The XRPL is special because it has both a traditional order book (DEX) and AMM pools. When you make a trade, the ledger automatically routes your order through whichever gives the better price.

• Small trades → Usually go through the AMM pool (instant, no waiting)
• Large trades → May split between AMM and DEX order book for better execution
• Arbitrage → If the pool price drifts from the DEX price, traders automatically correct it

🚀 From Real-World Asset to 24/7 Trading in 10 Steps

📊 XRPL Pools (6)

🌠 Stellar Pools (3)

❓ Common Questions — Simple Answers