XRPL Proposal Introduces New Curve Models for AMM Pools

TLDR

• XRP Ledger developers submitted a draft proposal for swappable AMM curve models.
• The proposal would allow liquidity pool creators to choose different pricing curves.
• XRPL could support concentrated liquidity and StableSwap pool structures under the draft.
• Existing AMM pools would remain compatible with the current XLS-30 framework.
• The proposal would allow multiple AMM pools for the same asset pair on XRPL.

A new draft proposal submitted to the XRP Ledger standards repository seeks to expand the functionality of the network’s automated market maker system. The proposal, titled “AMM Swappable Curves,” was opened on May 26 by developers Roman Thpt and Denis Angell.

The amendment is designed to build on XLS-30, the current automated market maker framework used on the XRP Ledger. The proposal introduces a new architecture that would allow liquidity pools to use different pricing curves when they are created.

According to the draft, “users who create pools would be allowed to select a curve type when launching their AMM pool.” The proposal aims to move XRPL’s AMM design away from a single pricing structure and support multiple liquidity models within the same network.

XRPL Proposal Adds Flexible AMM Curves

Under the current XLS-30 structure, XRPL AMMs use a constant-product model. This method spreads liquidity across the entire price range of an asset pair. The new draft proposes additional curve types that could better match different trading conditions.

The initially proposed options include the existing constant-product curve, a concentrated liquidity model similar to Uniswap v3, and a StableSwap-style curve designed for assets that trade at closely related prices, such as stablecoins.

The draft also references future support for other AMM structures. These include a weighted Balancer-style model and a programmable smart AMM system. The proposal states that these additions could expand the flexibility available to developers and liquidity providers on the network.

Concentrated Liquidity and StableSwap Models Explained

The concentrated liquidity model would allow liquidity providers to allocate funds within selected price ranges instead of distributing liquidity across all prices. This setup is designed to improve capital usage efficiency in pools where assets trade within narrow bands.

The StableSwap-style model focuses on assets with similar values. According to the proposal, this design could offer lower slippage and better trade execution for correlated assets, especially stablecoins.

The draft notes that the current constant-product model may not perform efficiently in all trading environments. By adding curve selection during pool creation, the proposal seeks to provide more specialized AMM options for different asset categories and market structures.

Backward Compatibility Remains Part of the Design

The proposal keeps compatibility with the existing XLS-30 framework. Current AMM pools would continue using the constant-product curve without changes. New curve types would use separate ledger keys, allowing multiple AMM pools for the same asset pair to exist at the same time.

According to the draft proposal, “new curve types would use distinct ledger keys,” which would allow pools with different pricing models to operate independently on the ledger.

If approved, the amendment could expand the range of decentralized exchange tools available on XRPL. Developers would also gain access to multiple AMM structures designed for different trading conditions and liquidity strategies.

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