XRPL could close its biggest DeFi gap if new AMM amendment passes
A draft proposal filed Tuesday would extend the XRP Ledger’s native automated market maker with three swappable curve types, giving liquidity providers more efficient ways to deploy capital and closing one of XRPL DeFi’s longest-standing gaps.
What to know:
- A new draft amendment, “AMM Swappable Curves,” would upgrade the XRP Ledger’s automated market maker by adding three new curve types—constant product, concentrated liquidity and StableSwap—with a programmable Smart AMM to follow.
- The change is designed to let liquidity providers choose how their pools price assets, improving capital efficiency for both volatile pairs and near-1:1 assets like stablecoins, while leaving existing pools on the current constant product model.
- The proposal comes as more than $3 billion in tokenized real-world assets, including a recent Ripple-JPMorgan pilot, sit on XRPL, but its impact on XRP and DeFi activity will depend on an amendment process that can take months and is not assured of passing.
A fourth, fully programmable curve type called Smart AMM is reserved for a follow-up specification. AMMs refer to automated market makers, a type of decentralized exchange where trades happen against a pool of deposited tokens rather than between buyers and sellers.
The proposal was authored by XRL core developers Denis Angell and Roman Thpt and would require a separate amendment vote before activation. For now it is still in draft.
What it would do is let liquidity providers on the XRPL choose how their pool prices assets. The current setup spreads liquidity uniformly across every possible price, which is fine for volatile pairs but burns capital for stablecoin pairs and correlated assets.
Concentrated liquidity lets liquidity providers (or users that supply their tokens to a protocol in exchange of capturing a share of fees) target a narrow band where most trades actually happen, which produces far more usable depth per dollar deposited. StableSwap is built for assets that trade near 1:1, like dollar-pegged stablecoins or wrapped representations of the same asset.
