Key Highlights
- XRP Ledger Foundation published a new XRPL standard for AMM v2.
- The proposal adds StableSwap and concentrated liquidity curves to the XRPL DEX.
- The upgrade is designed for stablecoins, FX markets, RWAs, and capital-efficient liquidity.
The XRP Ledger Foundation has published a new XRP Ledger Standard for AMM v2, proposing new pool curve designs for the XRPL decentralized exchange.
In a post on X, the Foundation said the new standard introduces StableSwap and Concentrated Liquidity curves, aimed at increasing capital efficiency and stabilizing pricing for stablecoins, foreign exchange markets, real-world assets, and other tokenized markets on the XRPL DEX.
The proposal appears in XRPL Standards discussion #547 under the title “AMM Swappable Curves.” It was opened on May 26 and is currently marked as a draft amendment proposal. The document lists Denis Angell and Roman Thpt as authors and identifies XLS-30, XRPL’s existing AMM standard, as a required dependency.
What AMM v2 Changes
XRPL’s current AMM design uses a constant-product model, similar to the structure used by early decentralized exchanges. XRP Ledger documentation states that XRPL’s AMM functions as a geometric mean AMM with a 0.5 weight parameter, effectively operating as a constant-product market maker.
The new AMM v2 standard would expand that framework by allowing different curve types at pool creation. According to the draft, the initial curve set includes:
| Curve Type | Model | Purpose |
|---|---|---|
| 0 | Constant Product | Current XLS-30 AMM behavior |
| 1 | Concentrated Liquidity | Capital-efficient liquidity within selected price ranges |
| 2 | StableSwap | Low-slippage trading for assets expected to trade near parity |
The proposal would allow different AMM pool designs to exist on XRPL depending on the market being served, rather than forcing all pools into the same constant-product structure.
Why StableSwap and Concentrated Liquidity Matter
The biggest change is market specialization.
A constant-product AMM works across many volatile asset pairs, but it spreads liquidity across a very wide price range. That can make it less efficient when most trading happens around a narrow market price.
Concentrated liquidity allows liquidity providers to deploy capital within specific price ranges. This can improve depth around active trading zones and reduce the amount of idle liquidity in the pool.
StableSwap is built for assets expected to trade close to the same value, such as stablecoin pairs, FX-linked tokens, and certain real-world asset markets. In those markets, the goal is usually low slippage around parity rather than broad volatility coverage.
That is why the XRP Ledger Foundation framed the proposal around stablecoins, FX markets, RWAs, and broader XRPL DEX liquidity.
Existing AMM Pools Would Remain Compatible
The draft is designed to preserve compatibility with existing XRPL AMM pools.
Current AMM pools would default to CurveType 0, meaning they would continue operating under the existing constant-product model. For new pools, the selected curve type would become part of the AMM pool key, allowing multiple pools for the same asset pair to exist under different curve models.
The proposal also states that the curve type would be immutable after creation. In practice, a pool could not simply switch from constant-product to StableSwap after launch. Liquidity would need to be withdrawn and redeployed into a newly created pool using the desired curve.
AMM v2 Could Strengthen XRPL’s RWA and Stablecoin Push
The proposal arrives as XRPL continues to position itself around institutional DeFi, stablecoins, and tokenized assets. Ripple has previously highlighted XRPL’s AMM and AMM Clawback as part of its institutional DeFi infrastructure, including support for regulated tokens such as RLUSD.
AMM v2 would not directly launch new assets or markets. Instead, it would give builders more flexible liquidity infrastructure for assets that behave differently from volatile crypto pairs.
For stablecoins, FX markets, and RWAs, that distinction matters. These assets often need tighter pricing, deeper liquidity near parity, and lower slippage. The proposed curve system is aimed at giving XRPL-native liquidity pools a better fit for those use cases.
The standard remains at the proposal stage and has not yet been activated on the XRP Ledger. A final implementation would still need to pass through XRPL’s amendment process before becoming a live network feature.
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