A draft amendment in the XRP Ledger standards repository would expand XRPL’s automated market maker framework with three swappable curve types: constant product, concentrated liquidity, and StableSwap. If approved, the change would let liquidity providers choose how a pool prices assets at launch, addressing a long-running weakness in XRPL’s DeFi design.
Draft proposal would move XRPL AMMs beyond a single pricing model
The proposal, titled “AMM Swappable Curves”, was filed Tuesday by XRPL core developers Denis Angell and Roman Thpt. It is still in draft form and would need a separate amendment vote before activation, so the timeline and outcome remain open.
Under the draft, XRPL’s current AMM setup would be extended with three pluggable curve types. A fourth category, called Smart AMM, is being reserved for a later specification. In an AMM system, trades are executed against token pools rather than matching a buyer directly with a seller.
Concentrated liquidity and StableSwap target poor capital usage in certain pairs
XRPL’s existing AMM distributes liquidity evenly across the full price range. That structure can work for volatile pairs. It is far less efficient for stablecoin pairs and closely correlated assets, where much of the capital sits idle instead of supporting active trading.
Concentrated liquidity allows providers to place capital inside a narrower price band where most trades actually occur, producing deeper usable liquidity per dollar deposited. StableSwap is designed for assets that tend to trade near 1:1, such as dollar-pegged stablecoins or wrapped versions of the same asset.
Proposal arrives as XRPL builds tokenized real-world asset volume
The timing is notable because XRPL has been building traction in institutional tokenization. According to the report, the network now holds more than $3 billion in tokenized real-world assets onchain. That includes a Ripple-JPMorgan pilot earlier this month that processed a tokenized U.S. Treasury redemption in under five seconds.
Moving institutional assets onchain is only one part of the picture. For those assets to generate yield, be used as collateral, or trade efficiently against other tokenized instruments, the chain also needs DeFi infrastructure suited to those jobs. The proposal cites data showing that around 60% of AMM volume across major DeFi ecosystems now runs through some form of concentrated liquidity, a feature XRPL has lacked since its AMM launch in 2024.
Existing pools stay in place while new pools lock curve choice at creation
The amendment would leave current pools untouched. Pools created before the new curves take effect would remain on the constant product model, with no migration required. Any pool created under the new framework would select its curve type at launch, and that choice would stay fixed for the life of the pool.
XRP traded at $1.34 during U.S. morning hours on Tuesday. Whether this AMM upgrade reaches production in time to strengthen XRPL’s institutional push will depend on the amendment process, which can take months and does not guarantee passage.