The XRPL Foundation has officially launched the AMM Swappable Curves framework, marking the biggest upgrade to the XRPL's decentralized exchange since automated market makers first went live on the chain in March 2024. As reported by crypto.news and CoinDesk, the proposal was submitted by Denis Angell and Roman Thpt and represents an AMM v2 that bolts StableSwap and Concentrated Liquidity pools onto the existing infrastructure. The upgrade builds upon the original AMM system that went live on XRPL mainnet in March 22, 2024, which established the XLS-30 amendment using a constant product model. The new framework introduces multi-curve, pluggable pools that allow liquidity pool creators to select different curve models depending on market conditions and asset type, expanding beyond the current Uniswap v2-style constant product design. The proposal is filed under XLS discussion #547 and is currently in the community feedback stage, with XRPL developers and validators needing to review and approve the technical specifications before any code integration into the ledger.
The framework introduces concentrated liquidity functionality, allowing liquidity providers to focus funds within selected price ranges similar to Uniswap v3. According to crypto.news, StableSwap curves are purpose-built for assets that trade near a 1:1 ratio, like stablecoin pairs or tokenized fiat currencies. The StableSwap model flattens the pricing function around the peg, allowing much larger trades with minimal price impact compared to the classic constant product formula. The framework addresses a critical problem where trading tokenized versions of traditional assets creates specific inefficiencies that constant product AMMs handle poorly. When swapping stablecoins or trading tokenized euros for tokenized dollars, the price barely moves, making constant product curves waste most of their liquidity on price ranges that will never be reached. Concentrated Liquidity pools let providers focus their capital within specific price ranges, a model that now accounts for roughly 60% of AMM volume on major DeFi platforms. The first models expected under the proposed framework include Constant Product pools, Concentrated Liquidity pools, and StableSwap pools. Constant Product pools are suitable for more volatile asset pairs, while Concentrated Liquidity pools allow liquidity providers to place funds within selected price ranges rather than across the full market range, improving capital use when trading stays inside active price bands.
The framework maintains backward compatibility as a core design element, ensuring existing infrastructure remains unchanged. As reported by crypto.news, existing constant product pools stay exactly where they are, no migration required. The current XRPL AMM design allows one AMM per asset pair, but the proposed structure would identify pools by asset pair and curve type, allowing several pools for the same pair if they use different curves. The amendment process requires at least 80% validator approval over two continuous weeks before activation, with the proposal currently at an early stage and needing the formal amendment process before launch. The changes are intended to support deeper liquidity and more stable pricing on the XRPL DEX, features that are relevant for institutional DeFi applications where predictable execution and market depth are important. The proposal signals Ripple's broader ambition to make XRPL a more competitive venue for DeFi activity, an arena currently dominated by Ethereum and Solana. The framework's launch indicates active development and deployment readiness, with the XPL's DEX combining an automated market maker with a centralized limit order book, creating a hybrid design that most other chains don't offer.
The AMM v2 framework could significantly improve stablecoin, RWA and DeFi markets through enhanced capital efficiency. According to crypto.news, for stable pairs, concentrated liquidity can deliver up to thousands of times better capital efficiency compared to the constant product model. The XRP Ledger currently hosts over $3 billion in tokenized real-world assets, making these efficiency improvements particularly valuable for institutional and stablecoin trading. The framework is expected to improve trading conditions for assets such as RLUSD, USDC and other stable or correlated tokens on the XRPL, with lower slippage and tighter spreads being key goals of the upgrade. For liquidity providers, the AMM v2 framework may allow more targeted use of capital, instead of spreading liquidity across a wide price range, providers could deploy funds where trading activity is most likely to occur. The $3 billion in tokenized assets already on the ledger represents a built-in demand base for these new pool types, spanning everything from government bonds to commodities. The proposal signals Ripple's broader ambition to make XRPL a more competitive venue for DeFi activity, with XRP trading around $1.33 to $1.34 at the time of the framework's launch. The risk lies in execution, as studies have repeatedly shown that passive concentrated liquidity providers often underperform compared to those actively managing their positions on platforms like Uniswap V3, requiring the XRPL Foundation to provide robust tooling and education to prevent retail LPs from getting outmaneuvered by professionals.
