XRPL Draft Amendment Proposes Three New AMM Curve Types to Boost DeFi
A draft amendment filed Tuesday would upgrade the XRP Ledger's automated market maker (AMM) by adding three new curve types: constant product, concentrated liquidity, and StableSwap, with a Smart AMM to follow. The proposal, authored by core developers Denis Angell and Roman Thpt, aims to let liquidity providers choose how their pools price assets, improving capital efficiency for volatile and stable pairs alike. Currently, XRPL's AMM spreads liquidity uniformly, which is inefficient for stablecoins and correlated assets. Concentrated liquidity, which now handles about 60% of AMM volume across major DeFi ecosystems, would allow providers to target narrow trading bands. StableSwap is designed for near-1:1 assets. The upgrade could close a major gap for XRPL, which has over $3 billion in tokenized real-world assets onchain, including a recent Ripple-JPMorgan pilot. However, the amendment process may take months and is not guaranteed. Existing pools remain unchanged under the constant product model; new pools can select a curve type at creation. XRP traded at $1.34 at the time of the report.
Key facts
- Draft amendment 'AMM Swappable Curves' adds three AMM curve types to XRPL.
- Liquidity providers can choose curve types for capital-efficient trading.
- Concentrated liquidity and StableSwap target stable pairs and near-1:1 assets.
- XRPL holds over $3 billion in tokenized real-world assets onchain.
- Amendment process may take months; existing pools remain unchanged.