XRPL Foundation Introduces New Proposal to Improve XRPL AMM Structure

The XRPL Foundation introduced a draft AMM upgrade proposal that would add multiple liquidity curve models to the XRP Ledger.

Notably, the XRPL proposal expands the existing XLS-30 AMM structure with concentrated liquidity, StableSwap, and future Smart AMM functionality, but keeps older pools fully compatible.

Key Points

• The XRPL Foundation published the “AMM Swappable Curves” draft proposal to upgrade XRPL’s AMM infrastructure.
• The proposal eyes support for Concentrated Liquidity, StableSwap, weighted pools, and future programmable Smart AMMs.
• Concentrated Liquidity would let providers focus funds within selected price ranges instead of the full market range.
• StableSwap seeks to reduce slippage for stablecoin pairs.
• The proposal also introduces multiple pools for the same token pair and expanded AMM transaction functionality.

The New AMM Proposal

The proposal, called “AMM Swappable Curves,” came from developers Denis Angell and Roman Thpt as part of efforts to expand the network’s DeFi capabilities. It builds on the current XRPL AMM system introduced through XLS-30, which went live in 2024. 

Notably, the new design would allow pool creators to choose from different mathematical structures when setting up a pool, instead of forcing every liquidity pool to use the same model. The goal is to make liquidity pools more flexible and more efficient for different types of assets.

Today, we’re publishing a new XRP Ledger Standard for AMM v2.

New pool curves StableSwap & Concentrated Liquidity increase capital efficiency and stabilize pricing for stablecoins, FX markets, RWAs and beyond on the XRPL DEX.

Details:https://t.co/jU9CrXA1tH pic.twitter.com/ImSioPCDNE

— XRP Ledger Foundation (@XRPLF) May 26, 2026

Importantly, developers designed the proposal to work alongside the existing XLS-30 system without affecting pools that already exist. 

Current pools would continue running normally, while only newly created pools could use the added features. The proposal recently entered draft status and still needs activation through the featureAMMCurves amendment before launch.

Why the Upgrade Could Matter to Users

Right now, the XRPL AMM system uses the constant-product formula (x * y = k). This model spreads liquidity evenly across all possible price levels. While it works well for volatile assets, developers believe it does not use capital efficiently for stablecoins because most trades happen close to a 1:1 price ratio.

The new proposal would let creators choose liquidity curves that better fit specific asset types and trading strategies. As a result, liquidity providers could get stronger trading depth while using the same amount of funds.

The proposal would also allow several pools to exist for the same token pair. For instance, one pair could have a constant-product pool, a stable-focused pool, and a concentrated liquidity pool operating at the same time. 

Developers also want to prepare the system for future programmable Smart AMMs but maintain full compatibility with older pools.

Curve Types Included in the Proposal

Further, the proposal introduces a CurveType field that pool creators can select during setup. First, Curve 0 keeps the current constant-product model from XLS-30, using the same x * y = k formula made popular by Uniswap V2. This option would remain the default choice to preserve backward compatibility and would not require extra fields.

Curve 1 adds Concentrated Liquidity, similar to the system used in Uniswap V3. This model allows liquidity providers to focus their capital within specific price ranges called ticks. The structure relies on virtual reserves and tick-based calculations.

Meanwhile, Curve 2 introduces StableSwap, which targets stablecoins and closely related assets such as USD-pegged tokens. This uses an amplification coefficient called A to flatten the curve near the 1:1 peg and helps reduce slippage during large trades.

Curve 3 is reserved for a future weighted model similar to Balancer, while Curve 4 presents plans for a Smart AMM system that developers may introduce in a later specification.

Changes That Could Expand XRPL DeFi

The proposal would also change how XRPL identifies liquidity pools. Specifically, the system would include both assets plus the CurveType field instead of using only the asset pair. 

Developers also plan to expand AMM ledger entries with new fields such as CurveType, FeeTier for concentrated liquidity pools, Amplification for StableSwap pools, liquidity tracking data, current tick and price information, and fee accumulators.

Concentrated liquidity pools would also introduce non-fungible liquidity positions stored as separate ledger entries instead of standard LP tokens. Meanwhile, liquidity providers would set tick ranges during deposits.

Proposal Could Improve Liquidity and Tokenization

The XRP Ledger payment engine and decentralized exchange pathfinding system would continue working across different curve types and order books. Developers also discussed helper functions that could help traders find the best pools and routing paths during swaps.

The proposal keeps reserve and ownership mechanics similar to the current AMM system but adds extra owner reserves for concentrated liquidity positions and tick structures.

XRPL validator Vet reacted positively to the amendment on X, suggesting that it could mark the next stage of liquidity growth and tokenization on the XRP Ledger.

According to Vet, the StableSwap feature could improve pricing efficiency for pools such as RLUSD/USDC across the full liquidity range. 

Vet also said concentrated liquidity would allow users to focus capital only on the price ranges that matter most, instead of spreading funds across the entire market. He encouraged the community to share feedback as developers continue working on the proposal.