Ex-Ripple CTO Adds Over 1K XRP and Over 23M FUZZY to AMM Pool to Boost Liquidity

Ripple CTO emeritus David Schwartz has drawn attention to his latest liquidity provision in the XRP/FUZZY automated market maker (AMM) pool. 

He shared the transaction today, offering a clear example of how liquidity provision on the XRP Ledger (XRPL) works, while also highlighting the financial and tax complexities involved.

Key Points

• Ripple CTO Emeritus David Schwartz executes a two-sided deposit into the XRP/FUZZY AMM pool. 
• In the latest transaction, Schwartz deposited 1,009 XRP and 24.78 million FUZZY to the AMM pool. 
• The deposit earned him 96.66 million XRP/FUZZY LP tokens, enabling him to earn a share of swap fees generated within the AMM. 
• FUZZY’s market cap surged from $16 million to $19 million within a few days. 

Ex-Ripple CTO Provides Liquidity to XRP/FUZZY AMM Pool 

In a tweet today, Schwartz revealed that he executed a two-sided deposit into the XRP/FUZZY AMM pool via XPMarket. Specifically, he supplied both his XRP holdings and the FUZZY tokens he had previously received as a gift, thereby boosting market liquidity. 

According to data from Bithomp, Schwartz deposited 1,009 XRP (worth about $1,429) alongside 23.78 million FUZZY tokens (valued at roughly $1,433). As a result, he obtained 96.66 million XRP/FUZZY LP tokens. 

Notably, the transaction incurred a minimal network fee of just 0.000012 XRP, underscoring XRPL’s cost efficiency. By taking this position, Schwartz can now earn part of the trading fees generated from swaps within the pool. In addition, he also gains exposure to price fluctuations between XRP and FUZZY. 

Meanwhile, Schwartz pointed to several unresolved tax considerations tied to the transaction. For instance, he questioned how to determine the correct asset valuation, establish cost basis, and calculate potential capital gains obligations. 

Not an Endorsement

Notably, Schwartz clarified that this move does not signal an endorsement of FUZZY. Instead, he described the liquidity provision as a gesture of appreciation after the community gifted him 100 million FUZZY tokens, which followed his earlier trust line addition of 320.93 million FUZZY on the XRP Ledger.

For context, FUZZY launched in February 2025 as an XRPL-based meme coin inspired by the historic “FuzzyBear” address, which first appeared in 2013. 

Although the token has existed for over a year, it gained renewed traction during the recently concluded XRP Las Vegas event, where a series of giveaways, some of which benefited Schwartz, boosted visibility. 

Consequently, FUZZY’s market cap climbed from around $16 million to approximately $19 million this month. It currently trades at about $0.00006107, giving it a market cap of roughly $19.41 million.