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wip fix links fix 2 links trim and add topics Add checklist, rename sc subtopics Fix internal links Add DEX/AMM Add graphics reorg files reorg/rename Fix blurb Remove old JA files edits per review review changes rename output file name of index files to match the folder name Update output file and parent filenames add reusable links snippet fix broken links Update Ja file Move path.md to same location in i18n folder Revert naming for nft-collections page Rename to match files in En and Ja update links to reflect updated file name Rename nft-auctions under Ja folder and update links throughout Rename nftoken-authorized-minting and update links throughout Fix links Rename the nft-fixed-supply Ja file to match the reorg in English and update links Move nft-reserve-requirements file in Ja and update links Fix some more broken links Fix more broken links by renaming html files back Stablecoin reorg: fix various issues Remove nfts_by_issuer method (unreleased) page Remove redundant parent: attrs from config file Fix syntax highlighting of Authorizing Another Minter js Fix config/frontmatter errors
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html, parent, blurb, labels
| html | parent | blurb | labels | ||
|---|---|---|---|---|---|
| autobridging.html | decentralized-exchange.html | Auto-bridging automatically connects order books using XRP as an intermediary when it reduces costs. |
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Auto-Bridging
Any Offer in the XRP Ledger's decentralized exchange that would exchange two tokens could potentially use XRP as an intermediary currency in a synthetic order book. This is because of auto-bridging, which serves to improve liquidity across all asset pairs by using XRP when doing so is cheaper than trading directly. This works because of XRP's nature as a native cryptocurrency to the XRP Ledger. Offer execution can use a combination of direct and auto-bridged offers to achieve the best total exchange rate.
Example: Anita places an offer to sell GBP and buy BRL. She might find that this uncommon market has few offers. There is one offer with a good rate, but it has insufficient quantity to satisfy Anita's trade. However, both GBP and BRL have active, competitive markets to XRP. The XRP Ledger's auto-bridging system finds a way to complete Anita's offer by purchasing XRP with GBP from one trader, then selling the XRP to another trader to buy BRL. Anita automatically gets the best rate possible by combining the small offer in the direct GBP:BRL market with the better composite rates created by pairing GBP:XRP and XRP:BRL offers.
Auto-bridging happens automatically on any [OfferCreate transaction][]. Payment transactions do not use auto-bridging by default, but path-finding can find paths that have the same effect.
See Also
{% include '_snippets/rippled-api-links.md' %} {% include '_snippets/tx-type-links.md' %} {% include '_snippets/rippled_versions.md' %}