XRPL Foundation Proposes AMM Upgrade for StableSwap and Concentrated Liquidity

TLDR

• XRPL’s new AMM proposal adds StableSwap and concentrated liquidity tools.

• XRPL Foundation targets better liquidity with a fresh AMM upgrade plan.

  

• StableSwap and concentrated liquidity could reshape XRPL DeFi pools.

• XRPL’s proposed AMM upgrade aims to cut slippage for stable assets.

• New XRPL AMM draft keeps old pools while adding flexible curve models.

The XRPL Foundation has proposed an AMM upgrade that could reshape liquidity on the XRP Ledger. The draft introduces StableSwap and concentrated liquidity while keeping existing pools intact. The proposal targets deeper trading, lower slippage, and stronger support for tokenized assets.

XRPL AMM Draft Targets Flexible Liquidity

The proposal, called AMM Swappable Curves, outlines a new structure for XRP Ledger liquidity pools. Developers Denis Angell and Roman Thpt submitted the draft to expand XRPL’s DeFi framework. The standard would allow pool creators to select different curve models during setup.

The current AMM system uses the constant-product formula, which spreads liquidity across all prices. This model supports volatile assets, but it can waste capital in stable pairs. Therefore, the new design adds curve choices for assets with different trading behavior.

The draft keeps existing XLS-30 pools active, so current users would not need migration. New pools could choose added curve types after the amendment gains approval. Validators must support the featureAMMCurves amendment before the upgrade can activate.

StableSwap and Concentrated Liquidity Expand Pool Design

StableSwap would serve assets that trade near equal value, such as stablecoins and tokenized fiat. The model flattens the pricing curve near the peg and reduces slippage during larger trades. Pools like RLUSD and USDC could gain more efficient pricing.

Concentrated liquidity would let providers place capital inside selected price ranges. This structure can improve trading depth because funds target the most active price zones. Providers would avoid spreading liquidity across unused market levels.

The proposed AMM system would also allow several pools for one asset pair. A pair could have constant-product, StableSwap, and concentrated liquidity pools at once. This setup gives traders and liquidity providers more routing and strategy options.

Upgrade Supports XRPL DeFi and Tokenization

XRPL already supports tokenized assets, including real-world assets that often trade in narrow ranges. These assets need efficient liquidity because small price changes can affect large trades. Hence, the proposed AMM upgrade aligns with tokenization growth on the ledger.

The draft also updates how XRPL identifies liquidity pools. It would include both assets and the CurveType field in pool identification. Additionally, new ledger fields would track fees, ticks, amplification, and concentrated positions.

The XRPL payment engine and pathfinding system would continue working across curve types. Developers also plan helper functions for finding better routes during swaps. The proposal positions the AMM framework for deeper liquidity and future programmable Smart AMM features.

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