Key Highlights
- XRP Ledger Foundation published a new XRPL standard for AMM v2.
- The proposal adds StableSwap and concentrated liquidity curves to the XRPL DEX.
- The upgrade is designed for stablecoins, FX markets, RWAs, and capital-efficient liquidity.
The XRP Ledger Foundation has introduced a new standard for AMM v2, which suggests updated designs for how pools operate on the XRPL decentralized exchange.
The Foundation announced on X that a new standard is now available for the XRPL DEX. This update includes StableSwap and Concentrated Liquidity features designed to make trading more efficient and keep prices stable for things like stablecoins, foreign currencies, real-world assets, and other digital tokens.
We’re excited to announce a new standard for Automated Market Makers (AMM) on the XRP Ledger, version 2. This update introduces new pool curves – StableSwap and Concentrated Liquidity – that make trading more efficient and keep prices stable, especially for stablecoins, foreign exchange, and Real World Assets on the XRPL DEX. You can find more details below.
— XRP Ledger Foundation (@XRPLF) May 26, 2026
A new proposal called “AMM Swappable Curves” is being discussed within the XRPL Standards community (discussion #547). It was first introduced on May 26th and is currently a work in progress. Denis Angell and Roman Thpt are the authors, and it builds upon the existing XRPL AMM standard, known as XLS-30.
What AMM v2 Changes
The current automated market maker (AMM) on XRPL works like the first decentralized exchanges, using a constant-product model. According to XRP Ledger documentation, it’s a specific type of AMM – a geometric mean AMM with a 0.5 weighting – which essentially means it functions as a constant-product market maker.
The updated AMM v2 standard will allow creators to choose from various curve types when setting up new pools. The proposal currently lists these as the first available options:
| Curve Type | Model | Purpose |
|---|---|---|
| 0 | Constant Product | Current XLS-30 AMM behavior |
| 1 | Concentrated Liquidity | Capital-efficient liquidity within selected price ranges |
| 2 | StableSwap | Low-slippage trading for assets expected to trade near parity |
This plan would let different types of trading pools be created on XRPL, tailored to specific markets, instead of requiring them all to function in the same way.
Why StableSwap and Concentrated Liquidity Matter
The biggest change is market specialization.
Constant-product automated market makers handle many different kinds of assets, even those with big price swings. However, they distribute funds over a broad price range, which can reduce their effectiveness if most trades occur within a small price band.
Focused liquidity lets providers concentrate their funds within certain price points. This makes trading smoother and more efficient around commonly traded prices, while also minimizing unused funds in the system.
As an analyst, I see StableSwap as being specifically designed for assets that should maintain similar values – things like stablecoin pairings, tokens tied to foreign exchange rates, and even markets dealing with real-world assets. In these cases, the priority isn’t to capture big price swings, but to ensure trades happen with minimal price impact, keeping them very close to their expected value.
As a researcher, I’ve observed that the XRP Ledger Foundation strategically focused its proposal on areas like stablecoins, foreign exchange markets, real-world assets, and generally improving liquidity on the XRPL decentralized exchange. They believed these were key areas for growth and adoption.
Existing AMM Pools Would Remain Compatible
The draft is designed to preserve compatibility with existing XRPL AMM pools.
Existing automated market maker (AMM) pools will continue to function as they do now, using the standard constant-product formula. When creating new pools, the chosen curve type will be included in the pool’s identification code, which means that multiple pools with the same assets can operate using different formulas.
The proposal also explains that once a curve type is set, it cannot be changed. This means a liquidity pool couldn’t switch from one type, like constant-product, to another, like StableSwap, after it’s already launched. To change curve types, users would need to remove their funds and add them back into a new pool with the desired settings.
AMM v2 Could Strengthen XRPL’s RWA and Stablecoin Push
As someone invested in XRP, I’m watching closely as the XRPL blockchain really focuses on attracting institutions and building out DeFi – especially around stablecoins and tokenizing real-world assets. Ripple’s been talking a lot about how features like their Automated Market Maker (AMM) and the AMM Clawback function are key parts of this infrastructure, and importantly, they’re designed to support regulated tokens like RLUSD. It seems like they’re building a system that can handle institutional needs while still staying compliant, which is a big deal for long-term growth.
AMM v2 won’t be used to introduce new cryptocurrencies or trading options right away. Instead, it will provide developers with more adaptable tools for handling assets that aren’t as prone to price swings as typical cryptocurrencies.
Stablecoins, foreign exchange markets, and real-world assets all require precise pricing, readily available funds at their expected value, and minimal price differences when buying or selling. The new system we’re proposing is designed to make XRPL’s built-in liquidity pools better suited for these types of assets.
The proposed standard isn’t active on the XRP Ledger yet. It still needs to go through the XRPL’s approval process before it can be used on the network.
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2026-05-26 17:28