The XRP Ledger Foundation has published a new draft standard for AMM v2, proposing a major upgrade to the XRP Ledger decentralized exchange. The standard introduces new pool curve models—Constant Product, Concentrated Liquidity, and StableSwap—designed to improve liquidity, pricing stability, and capital efficiency across different asset markets on the XRPL DEX. The proposal expands the current automated market maker framework by allowing liquidity pools to use more than one pricing model, moving beyond the existing XLS-30 AMM design that relies mainly on a constant product model. These new models are intended to support stablecoins, foreign exchange pairs, real-world assets, and other correlated tokens that require tighter pricing and lower slippage.
Multi-Curve Pool Design for XRPL DEX
The AMM v2 proposal introduces a pluggable pool structure for the XRPL DEX, allowing liquidity pool creators to select from different curve models depending on market conditions and asset type.
Constant Product pools are similar to the design used by Uniswap v2 and are suitable for more volatile asset pairs.
Concentrated Liquidity pools are inspired by Uniswap v3. They allow liquidity providers to place funds within selected price ranges rather than across the full market range. This design can improve capital use when trading stays inside active price bands.
StableSwap pools are designed for assets that trade closely together, such as stablecoins, tokenized cash products, FX pairs, and certain real-world asset markets. These pools are intended to provide smoother pricing and lower slippage when assets have similar values.
Benefits for Stablecoins, FX, and Real-World Assets
The proposed standard is expected to improve trading conditions for assets such as RLUSD, USDC, and other stable or correlated tokens on the XRP Ledger. Lower slippage and tighter spreads are 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 XRP Ledger Foundation said the changes are intended to support deeper liquidity and more stable pricing on the XRPL DEX. These features are relevant for institutional DeFi applications, where predictable execution and market depth are important. The upgrade also supports the XRP Ledger's wider tokenization focus, as real-world assets, stablecoins, and FX markets are growing areas of blockchain finance where AMM design affects on-chain trading efficiency.
XRP Ledger Ecosystem Developments
The AMM v2 proposal follows other developments in the XRP Ledger ecosystem. Yellow integrated with the XRP Ledger EVM Sidechain in October, allowing users to access high-frequency trading, non-custodial clearing, and cross-chain liquidity for digital assets and real-world assets. The EVM Sidechain connection gives Ethereum-compatible applications another route into the XRP Ledger ecosystem while supporting broader DeFi tooling and maintaining links to XRPL liquidity and asset markets.
Separately, RealFi Payment Solutions is working with Shopify to develop an XRP Ledger-powered payment and rewards application for global e-commerce merchants. Shopify serves millions of merchants, making the partnership an example of efforts to connect XRPL-based infrastructure with retail payment use cases.
The XRP Ledger Foundation's AMM v2 standard remains a proposal, with adoption dependent on ecosystem review and implementation.
