A new proposal could overhaul how automated market makers (AMMs) work on the XRP Ledger, bringing multi-curve support, concentrated liquidity, and a path toward fully programmable AMMs similar to the most advanced DEX infrastructure on Ethereum.
What’s happening
- On May 26, contributors Denis Angell (@dangell7) and Roman Thpt (@RomThpt) filed “AMM Swappable Curves” (XLS Discussion #547) to the XRP Ledger Foundation’s repository. The draft amendment is open for community review on GitHub and builds directly on XLS-30, the amendment that introduced the XRPL’s first AMM in 2024.
- If adopted, the proposal would replace the current single-curve model with a pluggable-curve architecture, while remaining fully backward compatible with existing XLS-30 pools.
Why this matters
- Today’s XRPL AMM uses a single invariant—the constant product formula (the same model used by Uniswap v2)—which spreads liquidity uniformly across all prices. That design creates three core limitations, the proposal argues:
1. Capital inefficiency: most liquidity sits far from the current price and is inactive, making capital less productive for LPs compared with concentrated options.
2. Curve inflexibility: different asset pairs benefit from different swap curves—volatile pairs suit constant product, stablecoins benefit from StableSwap-style curves, and asymmetrically weighted or long-tail pairs may prefer Balancer-like weighting.
3. Composability: XRPL’s payment engine already routes across AMM pools and its native order book; adding curve diversity expands liquidity sources without changing existing pathfinding logic.
What the proposal introduces
- A pluggable curve system where pool creators choose a curve type at creation time. The initial set includes:
- Curve 0: Constant Product — preserves current XRPL AMM behavior and full compatibility with existing pools.
- Curve 1: Concentrated Liquidity — equivalent to Uniswap v3, letting LPs concentrate liquidity within price ranges for much higher capital efficiency.
- Curve 2: StableSwap — equivalent to Curve v1, optimized for low-slippage swaps between stablecoins or highly correlated assets.
- A future Curve 3 — “Smart AMM” — is reserved for a companion specification that would let creators deploy WebAssembly (WASM) binaries to define custom swap math, dynamic fees, and lifecycle hooks (before/after swap, deposit, withdrawal). The Smart AMM design intentionally mirrors the host ABI and sandbox model being developed for XLS-100 Smart Escrows, reusing the same WASM runtime infrastructure across XRPL features.
How it would work in practice
- Multiple pools for the same token pair (one per curve type) could coexist. XRPL’s payment engine would automatically route transactions across all available pools and the native order book to find the best liquidity, requiring no changes from end users or existing integrations.
Broader impact
- The proposal aims to elevate XRPL’s DeFi stack toward institutional-grade liquidity. The ledger already hosts over $2 billion in tokenized real-world assets and processes roughly $1.93 billion in monthly stablecoin transfers; adding Uniswap v3-style concentrated liquidity and Curve-style stable pools could make XRPL far more attractive to asset managers, banks, and stablecoin issuers building on the platform.
The amendment is still in draft and subject to community review and iteration. The GitHub discussion thread (XLS Discussion #547) contains the full technical specification and commentary from contributors.
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